Class action suit against Infosys in U.S. dismissed

Suit alleged violation of securities laws

Technology firm Infosys on Friday said a class action lawsuit filed against the company and some of its current and former employees in a U.S. court has been voluntarily dismissed by the plaintiff.

The case was filed in the eastern district of New York. In a regulatory filing, the company said, “On May 21, 2020, the plaintiff voluntarily dismissed the lawsuit without prejudice.”

The complaint was brought on behalf of a class consisting of persons or entities who purchased the firm’s publicly-traded securities between July 7, 2018 and October 20, 2019, and alleged claims for violations of the U.S. federal securities laws. A U.S.-based shareholder rights’ litigation firm had filed a case, on behalf of its clients, alleging Infosys had made false and misleading statements to the market and used improper recognition of revenue to boost short-term profit. The plaintiff also alleged CEO Salil Parekh skipped standard reviews of large deals to avoid accounting scrutiny.

A letter from the Editor

Dear reader,

We have been keeping you up-to-date with information on the developments in India and the world that have a bearing on our health and wellbeing, our lives and livelihoods, during these difficult times. To enable wide dissemination of news that is in public interest, we have increased the number of articles that can be read free, and extended free trial periods. However, we have a request for those who can afford to subscribe: please do. As we fight disinformation and misinformation, and keep apace with the happenings, we need to commit greater resources to news gathering operations. We promise to deliver quality journalism that stays away from vested interest and political propaganda.

Support Quality Journalism
Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Jun 3, 2020 7:56:24 PM |

Next Story