State Farm terminated its contract with the Mumbai outsourcing technology giant Satyam in the latest fallout from the fraud scandal involving the vendor’s chairman, confirmed a spokesperson for the Indian outsourcer. Reuters reports that Satyam would issue a statement later today.

Following admission on January 7 that he had overstated by $1 billion the company’s profits, Satyam’s chairman, Ramalinga Raju, resigned, fueling the Indian government to dissolve Satyam's board and arrest three of its executives. Upon news of the scandal, Satyam’s stock lost 86% of its market value. On Saturday, a six-member board appointed by the government confirmed that it would seek a new chief executive and chief financial officer for India’s fourth largest software services provider.

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