Yahoo Charged With $2.7 Billion Over Alleged Breach of Contract
Yahoo reported today that a federal civil court in Mexico City has passed an initial judgment of $2.7 billion USD against it over alleged breach of contract leading to lost profits.
The online search pioneer and one-time leader said it received a non-final verdict from the 49th Civil Court of the Federal District of Mexico City.
Worldwide Directories and Ideas Interactivas had filed a lawsuit against Yahoo for alleged claims of breach of contract, breach of promise, and lost profits from contracts associated with a yellow pages listings service.
Yahoo said the complainants’ claims are without merit and it will follow up on all appeals.
The news comes after a change in management due to a string of debacles that has plagued the firm over the past few years.
In July, Yahoo picked Marissa Mayer, former Google VP of Location and Local Services, as its new CEO.
Under the new management, Yahoo announced in October that it will close up shop and exit the South Korean market by the year-end as part of efforts to streamline its operations.