Shares of IT heavyweight Infosys surged 3 percent today after the Alabama court dismissed the case filed by Infosys employee Jack Palmer who accused the company of committing visa and tax fraud.
"I have said from the beginning that there is not much to read into the case. It is a small case but yes, it definitely questioned the brand image of Infosys and it has been sorted out, which is good and hence the stock is seeing a sentimental uptick," said Ankita Somani, IT analyst at Angel Broking.
The stock was at Rs 2420 , up 3 percent.
The Alabama federal judge Myron Thompson found Palmer’s case against Infosys had no legal legs because some of the claims brought by Palmer against Infosys, especially those related to threats, aren’t covered by Alabama state law.
The case, which was scheduled to go to trial on 17 September, will not be tried as Palmer failed to prove his claims of breach of contract and fraudulent misrepresentation against Infosys.
A lot was in stake for Infosys which has been in news for all wrong reasons lately. Firstly with the disappointing quarterly earnings and earlier this month, another ex-employee of the company filed a lawsuit against the company similar to the Jack Palmer case.