Yahoo spared $2.7 billion Mexican damages

Yahoo has been spared a potential $2.7 billion payout in legal damages after a Mexican court overturned an earlier ruling against the US web portal in a contract dispute.

In November 2011, WorldWide Directories and Ideas Interactivas, former Yahoo partners in Mexico on a directories business, filed an action against Yahoo, alleging breach of contract, breach of promise and lost profits dating back to 2002 and 2004. Yahoo counter-sued for $2.6 million for services rendered. On May 16, Yahoo announced that the Superior Court of Justice for the Federal District in Mexico had granted Yahoo’s appeal and reversed the earlier, non-final ruling of the 49th Civil Court of Mexico. It reduced the damages to $172,500 and upheld the $2.6 million awarded in the original judgment, Yahoo said in a statement, which it described as a “favourable” decision. WorldWide Directories could appeal against the ruling.