Class action lawsuit against Infosys dismissed in US

The move comes after whistleblower complaints alleging certain unethical practices by the top management emerged in October last year.

22nd May 2020
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Infosys Ltd said on Friday the class action lawsuit filed against the company and some of its current and former officers in a United States court last year, alleging claims for violations of the US federal securities laws, has been dismissed.


The move comes after whistleblower complaints alleging certain unethical practices by the top management emerged in October last year.


As previously announced, in October 2019, a class action lawsuit was filed in the United States District Court against the company and some of its current and former officers, the Bengaluru-headquartered company noted in a filing to stock exchanges.
Infosys



Infosys had disclosed that it had received whistleblower complaints alleging certain unethical practices by the top management. US market regulator Securities and Exchange Commission (SEC) had also investigated the matter.


"The complaint, which was filed in the Eastern District of New York, was brought on behalf of a class consisting of persons or entities who purchased the company's publicly traded securities between July 7, 2018 and October 20, 2019, and alleged claims for violations of the US federal securities laws," Infosys said in a regulatory filing on Friday.


It further said that on May 21, 2020, the plaintiff voluntarily dismissed the lawsuit without prejudice.


After receiving the whistleblower complaint, Infosys had started an internal probe into the matter and roped in external investigators.


In January this year, Infosys had said its audit committee had found no evidence of financial impropriety or executive misconduct, virtually giving a clean chit to CEO Salil Parekh and CFO Nilanjan Roy who were accused by anonymous whistleblowers of rigging the company's balance sheet.


In March, Infosys had said the SEC had concluded its investigation on the whistleblower allegations, and that it does not anticipate any further action by the regulator.


The Bengaluru-based company had said it has responded to all the inquiries received from Indian regulatory authorities and that it will continue to cooperate with the authorities if there are any additional requests for information.

(Edited by Javed Gaihlot)

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