Business

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.

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Printable version | Jun 3, 2020 7:56:24 PM | https://www.thehindu.com/business/class-action-suit-against-infosys-in-us-dismissed/article31653517.ece

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