Infosys May Face Class-action Lawsuit in US After Whistleblower Complaints of 'Unethical Practices'
Rosen Law Firm said it is investigating potential securities claims on behalf of shareholders of Infosys after allegations that the company may have issued 'materially misleading business information to the investing public'.
A day after news of whistleblower complaints filed with the US securities regulator against Infosys emerged, the Indian software services exporter is receiving attention from American legal firms, CNBC-TV18 reported.
Rosen Law Firm, a global investor rights law firm, said it is investigating potential securities claims on behalf of shareholders of Infosys after allegations that the company may have issued “materially misleading business information to the investing public”.
"Rosen Law Firm is preparing a class-action lawsuit to recover losses suffered by Infosys investors," the company said in a statement.
On October 21, 2019, Infosys said that it received whistleblower complaints alleging "unethical practices" by senior executives, including the CEO and CFO, to boost short-term revenue and profit.
An unnamed group sent letters to Infosys’ Board and the US Securities and Exchange Commission alleging that the company had taken “unethical” steps to inappropriately boost short-term revenue and profit. The letter alleged that CEO Salil Parekh was bypassing standard reviews of large contracts in order to skirt accounting scrutiny.
Infosys' shares took a beating on the stock exchanges, including in the US, after this news. Rosen Law Firm asked investors who purchased shares of Infosys to visit its website to join the class action.
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