Mexican Court Tells Yahoo to Pay Up $2.7 Billion
This morning, Yahoo! Inc. reported that “the 49th Civil Court of the Federal District of Mexico City has entered a non-final judgment of U.S. $2.7 billion against Yahoo! Inc.” Furthermore, the lawsuit was filed by Worldwide Directories S.A. de C.V. and Ideas Interactivas, S.A. de C.V against the internet giant.
The plaintiffs claim that Yahoo breached contract, breached promise, and caused a loss of profits from contracts related to a yellow pages listings service. Due to the fact that this case is not finished yet, we are unsure if $2.7 billion is the final number. However, with the recent trouble surrounding Yahoo, a $2.7 billion court order is the last thing that the Sunnyvale internet giant needs.
Remember when Samsung was ordered to pay Apple $1 billion for their damages? Clearly, this magnitude of a court order is not unheard of.
In the month of November, Yahoo’s stock price had been on the rise (up 12%). This is mostly due to the fact that Yahoo reported quarterly profits above $3 billion. After this news hit, the stock went down 2%.
Is it finally the end of the road for Yahoo with surrounding controversy and constant failure? Or is this just another bump in the road they will eventually overcome?
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