Investors filed lawsuits against Indian Satyam Computer Services on Thursday one day after the company's CEO resigned and confessed to manipulating the company's accounts to show enormously inflated profits and false assets.
Law firms Vianale & Vianale and Izard Noble who represent investors with American Depository receipts filed two class action lawsuits against the software company for issuing fake and misleading financial statements, the Financial Times reports.
An official of Satyam said today the company's CEO, B. Ramalinga Raju has not been seen at the headquarters since before he released the letter confessing of fraud -- the largest corporate fraud in India so far. The Securities and Exchange Board in India is expected to investigate Satyam's office on Thursday.
The fraud has alarmed several Fortune 500 worldwide companies who entrust their most critical data and computer systems to the company including General Electric, Nestle, Cisco, Sony and the World Bank. It has also had an impact on India's reputation as a land for business and how its local businesses are regulated.