News Update: SEC Sends Satyam Computer Services Limited Potential Lawsuit Notice (SAY)

The US Securities and Exchange Commission (SEC) has sent notice to Satyam Computer Services Limited (NYSE:SAY) that it is recommending a civil lawsuit against the global consulting and IT services company based on fraud allegations, reports MarketWatch Friday.

A Satyam company statement read Thursday: ""As of date, the SEC has not made a determination regarding any staff recommendation in this matter. The outcome of this matter is not determinable at this stage.""

The potential suit stems from a 2009 statement from Satyam that the company's former chairman increased the company's cash balances by more than $1 billion.

SmarTrend alerted subscribers to take profits in Satyam Computer Services on September 27, 2010 at $4.51, since then the stock fell 10.5%.

We are now watching for any positive developments that could result in a new uptrend signal.

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