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Infy rises as Class action lawsuit dismissed in US

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Infosys rose 1.68% to Rs 683.30 after a class action lawsuit filed against the IT major and some of its employees in the United States District Court stands dismissed.

In October 2019, a class action lawsuit was filed in the United States District Court against Infosys and certain of its current and former officers. The complaint, which was filed in the Eastern District of New York, was brought on behalf of a class consisting of persons or entities who purchased the company's publicly traded securities between 7 July 2018 and 20 October 2019, and alleged claims for violations of the US federal securities laws. On 21 May 2020, the plaintiff voluntarily dismissed the lawsuit without prejudice.

The Schall Law Firm, a shareholder rights litigation firm based in Los Angeles, had filed the complaint alleging that CEO Salil Parekh skipped standard reviews of large deals to avoid accounting scrutiny.

After unveiling Q3 results in January 2020, Infosys announced conclusion of the independent investigation into allegations contained in the anonymous whistleblower complaints disclosed earlier. The audit committee determined that the allegations are substantially without merit. It concluded that no restatement of previously announced financial statements or other published financial information is warranted.

Infosys' consolidated net profit (after minority interest) fell 3.1% to Rs 4,321 crore on a 0.8% rise in revenues to Rs 23,267 crore in Q4 March 2020 over Q3 December 2019.

Infosys is a global leader in next-generation digital services and consulting.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, May 22 2020. 09:48 IST