AAPL Stock: 118.88 ( + 1.13 )

Printed from

Yahoo: 'numerous' grounds to appeal $2.7B judgment

updated 08:07 pm EST, Mon December 3, 2012

Yahoo cites procedural errors, application of law

Sources within Yahoo say that the company has solid ground upon which to appeal a surprise $2.7 billion judgment handed down by a Mexican civil court last week. Details in the case remain murky even today, but sources familiar with Yahoo's plans indicate that the company believes the decision rests on shaky procedural ground and that there were multiple errors in the application of laws. Yahoo's appeal will likely be held by a panel of three judges in a superior court in Mexico City, though when that appeal may be filed is unclear.

According to Reuters, the case centers around the commercial relationship between Yahoo and two Mexican companies, Worldwide Directories S.A. de C.V. and Ideas Interactivas S.A. de C.V. Yahoo reportedly entered into a commercial relationship with the two firms in 2002, and terminated that relationship in 2009.

The particulars of the plaintiffs' case remain unclear, as documents from local courts in Mexico are unavailable for public review. Previous reports have the case centering on "alleged claims of breach of contract, breach of promise, and lost profits arising from contracts related to a Yellow Pages listings service."

The announcement on Friday that a $2.7 billion judgment had been handed down against the Internet giant came as a shock to investors, who had not been made aware that the case even existed. Yahoo's most recent 10Q filing, which lists major ongoing legal matters, made no mention of the suit.

Should the decision stand, the $2.7 billion figure would represent about 36 percent of the $7.56 billion in cash Yahoo had as of September 30. Outside observers note that the ruling seems unusually high given the small size of Yahoo's business in Mexico.

by MacNN Staff



Login Here

Not a member of the MacNN forums? Register now for free.


Network Headlines

Follow us on Facebook


Most Popular


Recent Reviews

Ultimate Ears Megaboom Bluetooth Speaker

Ultimate Ears (now owned by Logitech) has found great success in the marketplace with its "Boom" series of Bluetooth speakers, a mod ...

Kinivo URBN Premium Bluetooth Headphones

We love music, and we're willing to bet that you do, too. If you're like us, you probably spend a good portion of your time wearing ...

Jamstik+ MIDI Controller

For a long time the MIDI world has been dominated by keyboard-inspired controllers. Times are changing however, and we are slowly star ...


Most Commented