Industry

Class action suit against Infosys dismissed in U.S.

Infosys CEO Salil Parekh,   | Photo Credit: SOMASHEKAR GRN

Tech firm Infosys on May 22 said a class action lawsuit filed against the company and some of its current and former employees in the Eastern District of New York in the United States District Court was voluntarily dismissed by the plaintiff .

In a regulatory filing to various bourses, the company said, “On May 21, 2020, the plaintiff voluntarily dismissed the lawsuit without prejudice.”

It further said, as previously announced, in October 2019, a class action lawsuit was filed in the United States District Court against the company and certain of its current and former officers. 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 U.S. federal securities laws.

It may be recalled that a U.S.-based shareholder rights litigation firm had filed a case, on behalf of its clients, alleging that the company made false and misleading statements to the market and used improper recognition of revenue to boost short-term profits. The plaintiff also alleged that company chief executive Salil Parekh skipped standard reviews of large deals to avoid accounting scrutiny.


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Printable version | Jun 24, 2021 6:36:53 AM | https://www.thehindu.com/business/Industry/class-action-suit-against-infosys-dismissed-in-us/article31647106.ece

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