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Class Action Lawsuit Filed Against Infosys for violations of US Federal Laws Dismissed in US Court

By Parth Thummar      Jun 05, 2020      0 Comments
Class Action Lawsuit Filed Against Infosys

Infosys had on May 22, 2020, announced that a class-action lawsuit filed against it and some of its employees in the United States District Court had been dismissed.

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 had 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. On May 21, 2020, the plaintiff had voluntarily dismissed the lawsuit without prejudice," Infosys said in a statement.

After receiving the whistle-blower complaint, Infosys had started an internal probe into the matter and roped in external investigators. In January 2020, Infosys had said that 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 whistle-blowers of rigging the company's balance sheet.

The Schall Law Firm, a shareholder rights litigation firm based in Los Angeles, had filed the complaint alleging that CEO Salil Parekh had skipped standard reviews of large deals to avoid accounting scrutiny. It was also alleged that the company's finance team was pressured to hide details of these deals and other accounting matters from auditors and the company's Board of Directors.

Infosys Limited is a global multinational corporation that provides business consulting, information technology, and outsourcing services. It is headquartered in Bangalore, Karnataka, India. Infosys is touted as the second-largest Indian IT company after Tata Consultancy Services.

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