Los Angeles-Based Law Firm Announces Filing Of A Class Action Lawsuit Against Infosys Ltd In A United States Court

The Schall Law Firm, a shareholder rights litigation firm based in Los Angeles has announced the filing of a class action lawsuit against Infosys Limited.

According to the complaint, Infosys allegedly made false and misleading statements to the market and used improper recognition of revenue to boost short-term profits.

The development comes months after an anonymous whistleblower complained against Infosys and its CEO Salil Parekh on the similar lines. However, the company stated after an internal investigation that it could not find any evidence to substantiate the allegations by the anonymous whistleblower.

The complaint had stated that CEO Parekh skipped standard reviews of large deals to avoid accounting scrutiny. In fact, the company's finance team was pressured to hide details of these deals and other accounting matters from auditors and the company's Board of Directors.

“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", a statement by the law firm said.

Schall stated that it encourages investors with losses in excess of USD 100,000 to contact the firm.

The class action lawsuit against Infosys Limited listed on the New York Stock Exchange (NYSE) for violations of 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the United States Securities & Exchange Commission.

Investors who purchased the company's securities between July 7, 2018 and October 20, 2019, inclusive (the “class oeriod”), have been asked to contact the firm before December 23, 2019, it said.

The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.