The Superior Court of Justice for the Federal District in Mexico agreed to overturn awards against Yahoo and Yahoo Mexico after Yahoo appealed a previous ruling that had ordered it to pay $2.75 billion in a suit brought by Worldwide Directories and Ideas Interactivas, who alleged that Yahoo had breached contract related to a yellow pages listings service. The companies claimed to have lost profits as a result of the alleged breach.
Yahoo announced the news with the following statement:
Yahoo! Inc. today announced that the Superior Court of Justice for the Federal District in Mexico has granted the company's appeal and reversed the ruling of the 49th Civil Court of Mexico, which had entered a non-final judgment of $2.75 billion against Yahoo! and Yahoo! Mexico on November 28, 2012.
The appellate decision overturned all monetary awards against Yahoo! Inc. and reduced the monetary award against Yahoo! Mexico to $172,500. Yahoo! Mexico was awarded $2.6 million in the original judgment, and this award was confirmed by the appellate decision. The plaintiffs may appeal this decision.
The appellate decision pertains to the lawsuit filed by World Wide Directories, S.A. de C.V. and Ideas Interactivas, S.A. de C.V. against Yahoo! Mexico and Yahoo Inc. in 2011. On December 12, 2012, and December 13, 2012, respectively, Yahoo! Mexico and Yahoo! Inc. appealed the judgment to a three-magistrate panel of the Superior Court of Justice for the Federal District.
This rounds out a pretty big week for Yahoo, who also struck a deal with Twitter to bring Tweets to the Yahoo Homepage newsfeed, and is reportedly been in talks to acquire Tumblr (though word is they face some serious competition from Facebook).