Yahoo ordered to pay $2.7 billion in Mexican lawsuit
A worker moves a section of a Yahoo! billboard onto a truck in San Francisco, California. The company has seen its first resignation in the wake of the scandal over CEO Scott Thompson’s botched academic record: board director Patti Hart.
Yahoo said a Mexican court has ordered it to pay $2.7 billion to Worldwide Directories SA and Ideas Interactivas SA, which claimed a breach of contract related to a yellow-pages listings service.
More from GlobalPost: Yahoo CEO Marissa Mayer delivers surprising Q3 earnings
Worldwide Directories and Ideas Interactivas had accused Yahoo and its subsidiary Yahoo de Mexico SA of breach of contract, breach of promise and lost profits stemming from yellow-pages listings contracts, reported NASDAQ. Yahoo has said the claims are without merit and plans to appeal.
In a statement on its website, Yahoo said the 49th Civil Court of the Federal District of Mexico City had "entered a non-final judgment of US $2.7 billion against Yahoo! Inc. and Yahoo de Mexico."
The company's most recently reported quarter said it only generated $1.2 billion in revenue, according to CNet.
Yahoo shares fell by 1.4 percent in after-the-bell trading following the release of the news, noted BBC.