Yahoo ordered to pay $2.7 billion in Mexican court case

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.

SHARE:
TOPICS: Legal
4
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.

Topic: Legal

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

4 comments
Log in or register to join the discussion
  • That's one hell of a costly yellow pages service if the compensation

    for lost income is $2.7 billion. However, it does make you wonder how they claim Yahoo took paying business away from them!!

    It also makes you wonder if they were delivering a value added service to their clients prior to this, and if they will in the future.
    Deadly Ernest
  • Pocket Change

    2.7 billion USD is pocket change? That's roughly a third of their on-hand cash and over 10% of their total market cap. I think the stockholders will see that differently.
    IndifferentDisdain
    • Re-read...

      "making the judgement A little more than pocket change". The difference a single word makes...
      scottz29
      • I've heard it both ways

        ... to quote one of my favorite shows. I think that sentence can be read either way; if it had said "a little more than JUST pocket change", the author would have gotten her point across more clearly. Anytime two people can read the same sentence two different ways, then the sentence could be constructed better.
        IndifferentDisdain