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Mexican court tosses $2.7 billion penalty in Yahoo! case

By Agence France-Presse
Thursday, May 16, 2013 23:15 EDT
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The Yahoo logo is displayed in front of the company's headquarters on July 17, 2012 in Sunnyvale, CA. [AFP]
 
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Yahoo! announced on Thursday that a Mexican appeals court tossed out a $2.7 billion dollar damages award in a breach of contract lawsuit.

“The appellate decision overturned all monetary awards against Yahoo! Inc. and reduced the monetary award against Yahoo! Mexico to $172,500,” the California-based Internet pioneer said in a release.

“Yahoo! Mexico was awarded $2.6 million in the original judgment, and this award was confirmed by the appellate decision.”

The lawsuit was brought by Worldwide Directories SA de CV and Ideas Interactivas, alleging “breach of contract, breach of promise, and lost profits arising from contracts related to a yellow pages listing service.”

In November, the 49th Civil Court of the Federal District of Mexico City “entered a non-final judgment of US $2.7 billion against Yahoo! Inc. and Yahoo de Mexico” in the case, according to the US firm.

Yahoo! contended the claims were “without merit” and appealed to the Superior Court of Justice for the Federal District in Mexico, which sided with Yahoo! and overturned the ruling, the release stated.

Yahoo! did not provide details regarding facts of the case.

Yahoo! shares were up slightly to $26.75 in after-market trades.

[Image via Agence France-Presse]

Agence France-Presse
Agence France-Presse
AFP journalists cover wars, conflicts, politics, science, health, the environment, technology, fashion, entertainment, the offbeat, sports and a whole lot more in text, photographs, video, graphics and online.
 
 
 
 
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