Carlos Bazan-Canabal Says Yahoo!’s Mexican Lawsuit May Be Worth $3.5 Billion
The Yahoo! lawsuit may be a lot more serious than the company thought. A court in Mexico City ruled that Yahoo! must pay $2.7 billion for breach of contract. The plaintiff in the case Carlos Bazan-Canabal said that Yahoo! could owe over $2.7 billion.
Yahoo! said that the judgment is “non-final” and they are planning to appeal. However Carlos Bazan-Canabal agreed that the judgment is non-final, but because all of the damages have not been calculated yet and could be as high as $3.5 billion.
“We believe that there are still sums to quantify,” stated Bazan-Canabal in an interview with BusinessInsider.
Yahoo! and Worldwide Directories subsidiary Ideas Interactivas launched an online and printed Yellow Pages producet called Yahoo Paginas Utiles in 2003. The two companies were partnered through 2005, but Yahoo! terminated the contract. They had an agreement to expand their deal internationally.
Worldwide Directories hired Silicon Valley law firm Orrick, Herrington & Sutcliffe to work with them. “I have a judgment that favors me for $2.7 billion,” stated Bazan-Canabal. “It doesn’t make sense to engage with Yahoo. There’s been no contact with Yahoo.” Supposedly the court has not yet calculated moral damages yet (known as punitive damages in America).This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry