Pleito; that’s Spanish for “lawsuit”
Como se dice “Yahoo” en Espanol? In a recent lawsuit between Yahoo and Mexico’s version of the Yellow Pages, Yahoo has been accused of various counts relating to breach of contract. A judge in Mexico City has brought down a $2.7 billion judgment on the internet corporation. Worldwide Directories and Ideas Interactivas claim that they have been losing profits due to Yahoo and Yahoo de Mexico’s regular business practices. The details of the lawsuit have not become public information; reports out of their headquarters in Sunnyvale, California state that Yahoo does not believe the decision to be final.
According to the most recent data, $2.7 billion is about 36% of Yahoo’s total worth. The real curious thing here is that the grounds for the lawsuit have yet to become public information. As stated, the Mexican government have not released any court documents pertaining to the case, leaving the specific details in a shroud of mystery.
Speculation is rising around any claim that Worldwide Directories and Ideas Interactivas have are still unavailable. Analysts apparently do not take this decision with much legitimacy, as stocks of Yahoo (YHOO) have remained relatively stable in all markets immediately following the news.
As far as mysterious and unfounded lawsuits go, this one might take the cake. I have no real problem with outrageously high settlement claims seeking “monetary damages”, “loss of business”, as those are parts of the system that have been left to be taken advantage of. However, there are no details here; in other words, it’s a completely unfounded claim. My guess is that these Mexican groups are hoping Yahoo will settle with them out of court just to make the problem go away, which is usually an admission of guilt. Yahoo hasn’t really done anything wrong (or at least nothing they’ve been made aware of), I can’t really see Yahoo opening their checkbook.