Yahoo! comes! out! guns! blazing! to! end! $2.7bn! Mexican! standoff!
Don't panic! Don't panic!
Yahoo! isn't worrying about a Mexico City civil court's $2.7bn preliminary judgment against it because it has loads of grounds for appeal, a source insisted.
According to those in the know, there were errors in court procedures and in the application of the law that the web firm could use to get the initial ruling overturned.
Yahoo! confirmed on Friday that the Mexican court entered a "non-final judgment" of $2.7bn against it and its subsidiary in the country in a lawsuit brought by Worldwide Directories and Ideas Interactivas. They alleged breach of contract, breach of promise and lost profits from a deal regarding a yellow pages listings service, Yahoo! said in a canned statement.
The company didn't give any further information on the case and Mexican court documents are not available to the public.
Yahoo! signed a contract with both companies in 2002 and then ended the relationship in 2009, the Reuters source said. The web firm will appeal to a panel of three judges in a superior court in Mexico.
A Yahoo! spokesperson could not be reached for comment. ®