Yahoo ordered to pay $2.7 billion in Mexican court case

Summary:A Mexican court has ordered Yahoo to pay $2.7 billion over allegations of contract breaches and lost profits.

yahoo mexican court court case 2 7 billion

A Mexican court has found in favor of Worldwide Directories S.A. de C.V. and Ideas Interactivas, S.A. de C.V. against Yahoo over a Yellow Pages listing service.

The court case, brought against Yahoo in the 49th Civil Court of the Federal District of Mexico City, has resulted in a non-final judgement of $2.7 billion against the tech giant.

Although details are thin on the ground, a statement issued by Yahoo states that the two plaintiff firms, Worldwide Directories S.A. de C.V. and Ideas Interactivas, S.A. de C.V., claimed that Yahoo allegedly breached contracts, breached "promises", and caused a lost of profit for the two companies in relation to a yellow pages listings service.

Sunnyvale-based Yahoo says that it "believes the plaintiffs' claims are without merit and will vigorously pursue all appeals."

The companies' SEC filing can be found here.

According to data compiled by Bloomberg, the tech giant has a market value of $22.2 billion, whereas cash reserves and short-term investments reached $8.41 billion as of the end of September -- making the judgement a little more than pocket change for the firm. Yahoo's Q3 results revealed a fall in sales to $1.2 billion from $1.22 billion a year earlier.

Topics: Legal

About

Charlie Osborne, a medical anthropologist who studied at the University of Kent, UK, is a journalist, freelance photographer and former teacher. She has spent years travelling and working across Europe and the Middle East as a teacher, and has been involved in the running of businesses ranging from media and events to B2B sales. Charli... Full Bio

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