Business

U.S. law firm initiates probe against IT major

Lens on securities laws’ compliance

A U.S. law firm, Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of American shareholders of Infosys on whether the New York Stock Exchange-listed firm and “certain of its officers and/or directors” complied with federal securities laws, according to a statement posted on its website.

On August 18, Infosys announced the resignation of its chief executive officer, Vishal Sikka. Mr. Sikka’s resignation followed criticism by the company’s founders of certain decisions by its board, including executive compensation and severance payouts.

“Sikka’s resignation letter stated, in part: ‘Over the last many months and quarters, we have all been besieged by false, baseless, malicious and increasingly personal attacks’; and, ‘This continuous drumbeat of distractions and negativity... inhibits our ability to make positive change and stay focused on value creation,” according to the statement.

ADRs decline

Following this news, Infosys American Depositary Receipts dropped as much as $1.43 per share, or almost 9%, during intra-day trading on August 18, 2017.

“If you are aware of any facts relating to this investigation, or purchased Infosys shares,” the person can contact the firm, according to the statement.

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 7:57:23 PM | https://www.thehindu.com/business/us-law-firm-initiates-probe-against-it-major/article19525370.ece

Next Story