A US court verdict in favour of Infosys led to a more than two per cent rise in its share price on the domestic bourses on Tuesday. The company’s market value surged by Rs 3,196 crore to Rs 1,38,220 crore, after a US court in Alabama dismissed a harassment suit filed against it by an American employee, Jack Palmer.
Having risen about four per cent during the day, Infosys shares ended at Rs 2,407.05 apiece, up 2.37 per cent, on the Bombay Stock Exchange. On the National Stock Exchange, the scrip settled 2.34 per cent higher at Rs 2,406.15.
Even as Infosys has tasted victory in its legal battle with Palmer, the company’s lawyers are preparing the defence of another suit filed by an ex-employee in California.
Infosys CEO S Shibulal on Tuesday said the company had completed its internal investigation in the case filed by ex-employee Satya Dev Tripuraneni. “Our investigation has confirmed the claims are unfounded. Our lawyers are preparing the defence,” he said.
Analysts said while the judgment by the Alabama court exonerated Infosys in the Palmer case, it had two more issues to be resolved. The company is still under investigation in the US by the department of homeland security and a federal grand jury.
“The investigation in the visa case is still on but Infosys has denied any deliberate wrong-doing in that as well,” said Shashi Bhushan of Prabhudas Lilladher in a note.
“This is a vindication of our stand. We are very pleased to know the matter is closed. The judge also said the case had no merit for a trial,” said Shubulal.
When asked if the ruling would impact Palmer’s employment with Infosys, Shibulal said, “Yes, he is an employee of Infosys. We need to look at the situation holistically.” When asked if Palmer (who has been on bench) would be put on any project, Shibulal said the utilisation for the company had been low. “As and when projects come through, people will be put on them.”
When asked if the company would look into the threats that Palmer allegedly received, Shibulal did not respond. On whether the company’s whistle-blowing policy would change, he said, “We have a well-defined policy for whistle-blowers. Any whistle-blowing will be investigated. As a policy, we do not retaliate in such cases. And, that has been borne out in this case. The judgment clearly said we had not retaliated.”
In an emailed statement, Kenny Mendelsohn, the US-based attorney who represented Palmer, said the judge had noted the threats against his client were ‘worrisome’ and ‘deeply troubling’.
“It is important for the public to understand the judge did not condone Infosys’ conduct. He merely concluded that under current Alabama law, Palmer had no right to recover from Infosys,” he said.
