SUNNYVALE (AP) — Yahoo Inc. has been ordered to pay $2.7 billion as part of a lawsuit filed in Mexico by two companies claiming breach of contract.
The Sunnyvale, Calif.-based company said Friday that a court in Mexico City handed down the decision against Yahoo Inc. and Yahoo de Mexico, S.A. de C.V. in a lawsuit brought by Worldwide Directories S.A. de C.V. and Ideas Interactivas S.A. de C.V.
The Mexican companies alleged breach of contract, breach of promise and lost profits arising from contracts related to a yellow pages listings service. The company has not mentioned the lawsuit in any of its recent regulatory filings.
Yahoo said in a statement that it believes the claims are without merit and will appeal. If Yahoo were not to succeed in its appeal, the $2.7 billion judgment would exhaust more than one-third of the $7.6 billion in cash it held at the end of September.
A representative for Yahoo could not be reached for comment.
Yahoo's shares fell 10 cents to close at $18.77. Shares declined 28 cents, or 1.5 percent, to $18.49 in after-hours trading after the company disclosed the verdict.