Yahoo! the US Internet giant has been ordered by a Mexican court to pay a huge amount of $2.7bn in fines. The struggling Internet Company has however issued a defiant response to the ruling claiming the verdict is without merit.
The suit is related to a Yellow Pages-type listing service with Yahoo and stems from the allegations of an alleged breach of contract, breach of promise and lost profits by Yahoo with Worldwide Directories S.A. de C.V. and Ideas Interactivas S.A. de C.V. The suit has been filed against both Yahoo’s US branch and its Mexican branch.
According to some sources, Yahoo’s earnings for 2011 were $ 4.98 billion – so the fine amount represents more than half of that.
Although the verdict is not in favor of Yahoo, It is not final.
“The plaintiffs’ claims are without merit and will vigorously pursue all appeals” writes Yahoo in a statement.
Shares of the company which grew sharply since the appointment of the new chief executive went down by 1.4% after the news broke out.
Marissa Mayer, the CEO, formerly of Google has been fighting hard to change the fate of the struggling company since her appointment mid-2012.