Industry

Infosys says no prima facie evidence against complaints made by whistleblower, stock gains

An employee walks past a signage board in the Infosys campus at the Electronics City IT district in Bangalore.

An employee walks past a signage board in the Infosys campus at the Electronics City IT district in Bangalore.   | Photo Credit: Reuters

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Infosys said last month that the U.S. Securities and Exchange Commission had launched a probe into whistleblower claims that the software services firm used “unethical practices” to boost revenue and profit

Information and technology major Infosys on November 4 said that there was no prima facie evidence against the complaints made by an anonymous whistleblower. This lead its shares to surge up to 6% in early noon trade on Monday.

“The anonymous complaints make certain allegations. There is no supporting evidence that has been received by the company along with these anonymous complaints to substantiate the allegations,” said Infosys in a statement to NSE.

“With respect to the anonymous complaints, there is no prima facie evidence that the company has received until date to corroborate any of the allegations made,” said the statement adding that given the circumstances at this stage, where there was complete absence of prima facie evidence and the anonymous complaints were still under investigation, the company was not in a position to determine the concreteness, credibility and materiality of the anonymous complaints.

Also read | The text of the whistleblower's letter to the Infosys Board and to the US SEC

The audit committee of the company has retained the services of the law firm, Shardul Amarchand Mangaldas & Co. to investigate the matter.

Before the appointment of the independent investigator the audit committee began consultations with independent internal auditors Ernst & Young. The independent internal auditors were given a mandate to review certain processes on the basis of the allegation in the Anonymous Complaints, said the statement.

“We will update the stock exchanges on the basis of key findings of the investigation reports once these are concluded,” said the company.

Infosys said last month that the U.S. Securities and Exchange Commission (SEC) had launched a probe into whistleblower claims that the software services firm used “unethical practices” to boost revenue and profit.

Infosys shares on NSE were trading up 4.63% at ₹719.75 in a firm Mumbai market on Monday noon.

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Printable version | Dec 15, 2019 2:08:19 PM | https://www.thehindu.com/business/Industry/infosys-says-no-prima-facie-evidence-on-whistleblower-complaints/article29876768.ece

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