The Schall Law Firm, a national shareholder rights litigation firm based in California, has filed a class action lawsuit against digital transformation major Infosys for “making false and misleading statements to the market.”
The lawsuit filed accused Infosys CEO Salil Parekh of avoiding standard reviews of mega deals to get rid of scrutiny. It also alleged that the Bengaluru-based tech firm used improper recognition of revenue to boost short-term profits.
“In fact, 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,” it said in its plaint.
Based on these facts, the company’s public statements were false and materially misleading throughout the class period and when the market learned the truth about Infosys, investors suffered damages, it said.
“The lawsuit goes on to call these allegations as ‘facts’ even as an independent investigation by law firm Shardul Amarchand Mangaldas is ongoing,” said a market analyst.
The Schall Law Firm has invited investors who purchased the company’s securities between July 7, 2018 and October 20, 2019, and incurred losses of over $100,000 to contact the firm before December 23, 2019.
