View this article online: https://www.insurancejournal.com/news/national/2009/01/20/97064.htm
Bloomington, Illinois-based State Farm Insurance Cos. has cut ties to an Indian company mired in a $1 billion fraud scandal, according to a published report.
State Farm terminated a contract with longtime vendor Satyam Computer Services Ltd., the insurance company told The (Bloomington) Pantagraph. About 400 Satyam employees working on information technology projects for the insurance giant will be laid off.
Satyam’s chairman recently confessed to doctoring the company’s books for years with fictitious cash deposits. The Indian government dissolved Satyam’s board and arrested three of its executives.
“The current uncertainties surrounding Satyam’s future and potential impact to State Farm resulted in this decision,” the company said in a statement.
Satyam employees working for State Farm will stay on for a short period to help with the transition, State Farm spokesman Jeff McCollum told the Pantagraph.
“There’s a lot of angst about these people because they are friends and co-workers,” McCollum said. “These people didn’t do anything wrong.”
The Satyam employees obtain visas to work for State Farm in the United States and may be able to find work elsewhere, he said.
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Information from: The Pantagraph, http://www.pantagraph.com