The Superior Court of Justice for the Federal District in Mexico has overturned a $2.7bn ruling against Yahoo and Yahoo Mexico in a breach of contract lawsuit.
The lawsuit was filed in 2011 by two Mexican firms Worldwide Directories and Ideas Interactivas.
In the lawsuit, the plaintiffs accused Yahoo of breach of contract, breach of promise and lost profits associated with a yellow pages listings service.
In November 2012, the 49th civil court of the federal district of Mexico City ruled in favour of the plaintiffs and fined Yahoo and Yahoo Mexico with $2.75bn in damages.
Yahoo appealed the earlier court’s decision by saying that the plaintiffs’ claims are without merit.
Yahoo said that in the latest ruling the court reduced the damages to $172,500 and upheld the $2.6m awarded in the original judgement.
The complainant may appeal the latest ruling by the court.
In 2003, Yahoo de Mexico signed an agreement with Ideas Interactivas to bring out ”Yahoo! Paginas Utiles – a directory which features information on local businesses and discounts as well as offers.
Initially, the agreement required both the firms to bring out 800,000 free copies and 1.7 million copies in the later stages, but Ideas Interactivas alleged that Yahoo did not take the deal seriously.
