Infosys Lawsuit: IT giant says is not aware of any additional complaints
Infosys Lawsuit: The tech major issued a statement citing it is not aware of any additional complaints, except for the one filed in October 2019.
Infosys Lawsuit: On account of media reports in regard to an additional US lawsuit against Infosys, the Indian IT major's share price had to witness heavy selloff yesterday. Infosys released a statement and rejected all such reports of an additional US lawsuit against the company. It said that it is not aware of any additional complaints, except for the one filed in October 2019. At 3:18 PM, shares of Infosys on the BSE had been trading at Rs 710.15, higher by Rs 8.30 from its previous close.
The Infosys statement issued on 13th December 2019 said that it is aware of only one complaint that was filed on 24th October 2019. It said, "The company is aware of several media stories referencing an additional securities class action lawsuit against Infosys. The company is not aware of any additional complaints, other than the initial complaint, which was disclosed on October 24, 2019.
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On the Schall Law Firm asking investors with losses in excess of $100,000 to contact the firm, Infosys said that it is "not uncommon" for plaintiff`s lawyers asking potential plaintiffs to contact them, for applying lead plaintiff status citing, "It appears that the press communications by the Schall Law Firm is soliciting potential lead plaintiff applicants."
According to the Schall Law Firm, Infosys made false and misleading statements to the market and used improper recognition of revenue to boost short-term profits. This came months after a whistleblower complained against Infosys and its CEO Salil Parekh on similar lines. The company, however, after an investigation, said it could not find the evidence.
The Schall Law Firm statement says, "Based on these facts, the company`s public statements were false and materially misleading throughout the class period. When the market learned the truth about Infosys, investors suffered damages." (With inputs from IANS)