Infosys row: IT major says not aware of any complaints against company other than one disclosed to bourses in October

Infosys, in a regulatory filing on Friday, said the company is aware of several reports referencing an additional securities class-action lawsuit against Infosys.

Press Trust of India December 13, 2019 18:56:19 IST
Infosys row: IT major says not aware of any complaints against company other than one disclosed to bourses in October
  • The clarification comes amid reports of the US-based Schall Law Firm saying it has filed a class-action lawsuit against Infosys to recover losses suffered by investors

  • In October, Infosys had informed the stock exchanges of having received anonymous whistleblower complaints

  • Stock exchange BSE had sought a clarification from Infosys on reports that the company was facing another lawsuit in the US

New Delhi: Infosys on Friday said it is not aware of any additional complaints made against the company other than the one it had disclosed to the bourses in October this year.

The clarification comes amid reports of the US-based Schall Law Firm saying it has filed a class-action lawsuit against Infosys to recover losses suffered by investors in the wake of allegations of "unethical practices" at the Indian IT major.

Infosys, in a regulatory filing on Friday, said the company is aware of several reports referencing an additional securities class-action lawsuit against Infosys.

Infosys row IT major says not aware of any complaints against company other than one disclosed to bourses in October

Representational image. Reuters

"The company is not aware of any additional complaints, other than the initial complaint, which was disclosed on 24 October 2019," it added.

Infosys pointed out that it is not uncommon for plaintiffs' lawyers to issue press releases or other media communications asking potential plaintiffs to contact them in order to apply for lead plaintiff status in an existing lawsuit.

"It appears that the press communications by the Schall Law Firm is soliciting potential lead plaintiff applicants," it said.

In October, Infosys had informed the stock exchanges of having received anonymous whistleblower complaints alleging certain unethical practices by the top management. US market regulator SEC has also initiated a probe on the matter, while Rosen Law Firm had said it was preparing a class-action lawsuit to recover losses suffered by Infosys investors in the US.

The Schall Law Firm, a national shareholder rights litigation firm, had announced the filing of a class-action lawsuit against Infosys Ltd, and asked investors who had purchased the company's securities between 7 July 2018 and 20 October 2019, inclusive (class period), to contact the firm before 23 December 2019.

Stock exchange BSE had sought a clarification from Infosys on reports that the company was facing another lawsuit in the US.

Infosys Chairman Nandan Nilekani had said the whistleblower complaint dated 20 September, as well as an undated complaint had been received by one of the board members on 30 September.

In the letter, dated September 20, and signed by ''Ethical Employees'', it was alleged that CEO Salil Parikh as well as Chief Financial Officer Nilanjan Roy engaged in forced revenue recognition from large contracts not adhering to accounting standards.

The complaints were placed before the audit committee on 10 October, and to the company's non-executive board members on 11 October, also the day when Infosys announced its second quarter results.

Infosys has been investigating the whistleblower complaints. An external law firm has been roped in to conduct an independent investigation into the allegations.

The Bengaluru-based company has said it will share the outcome of the investigation with all stakeholders at the relevant time.

The Securities and Exchange Board of India (SEBI) had sought additional information from the company, while the National Financial Reporting Authority (NFRA) - part of the corporate affairs ministry - is also looking into alleged accounting lapses at the firm.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Reliance Retail, Future Group's Rs 24,000 crore deal cleared by market regulator SEBI
Business

Reliance Retail, Future Group's Rs 24,000 crore deal cleared by market regulator SEBI

The SEBI, in its letter of approval, listed a number of conditions in accordance to the Composite Scheme of Arrangement. The regulatory body has also referred to the apprehensions raised by Amazon.

French president Emmanuel Macron pledges to toughen laws on child sex abuse, tells victims 'we believe you'
World

French president Emmanuel Macron pledges to toughen laws on child sex abuse, tells victims 'we believe you'

The French government made the pledged after a massive online movement saw hundreds of victims share accounts about sexual abuse within their families over the past week