Yahoo ordered to pay $2.7 bn
Yahoo has been ordered to pay $2.7 billion for breach of contract by a Mexican Court
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A court in Mexico has entered a preliminary $2.7bn ruling against search engine Yahoo for breaching contract with yellow pages listings service.
The plaintiffs in the case, Worldwide Directories and Ideas Interactivas, claimed that Yahoo breached an agreement that caused losses in profits.
In a statement on Yahoo’s investor page, the search engine said that the claims ranged against it are “without merit” and that it plans to ‘vigorously’ pursue plans to appeal the court’s decision.
Yahoo said that the $2.7bn ruling was a “non-final” judgement by the 9th Civil Court of the Federal District of Mexico City.
If the ruling is upheld, it could prove to be quite a bodyblow against Yahoo, who has been struggling to reposition itself since losing dominance in the search engine market to Google. The California-based company’s shares were down 1.4 per cent in after hours trading.
It’s not clear when the case was brought against Yahoo; the company’s most recent quarterly report makes no mention of an ongoing lawsuit.