Three United States-Based Law Firms Make Announcements On Class Action Suit Against Infosys Regarding Allegations

Three United States-based legal firms, namely Glancy Prongay & Murray LLP, Bragar Eagel & Squire as well as Zhang Investor Law have made announcements regarding a class action suit filed against Infosys in a US court.

Glancy Prongay & Murray LLP has made an announcement reminding Infosys investors of the upcoming December 23, 2019 deadline, to file a lead plaintiff motion in the class action filed on behalf of Infosys.

Similarly, Bragar Eagel & Squire has announced that a class action lawsuit has been filed in the United States District Court for the Eastern District of New York on behalf of investors who purchased Infosys Limited stocks between July 7, 2018 and October 20, 2019 (the class action period). “Investors have until December 23, 2019 to apply to the court to be appointed as lead plaintiff in the lawsuit,” the announcement stated.

Zhang Investor Law too has announced a class action lawsuit on behalf of Infosys shareholders who bought shares of Infosys Limited between July 7, 2018 and October 20, 2019.

“If you wish to serve as lead plaintiff, you must move the court no later than December 23, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation,” the announcement read.

Earlier, a New York-based Rosen Law Firm had announced moves to file a class action lawsuit against Infosys after whistleblowers released a letter which accused its CEO Salil Parekh and Chief Financial Officer Nilanjan Roy of unethical practices for many quarters.

It may be recalled that Infosys is listed on a US stock exchange and that whistleblowers had also written to the US Securities & Exchange Commission (SEC) and the US-based office of the Whistleblower Protection Program on October 3, alleging willful misstatement and material accounting irregularities to boost revenue and profit margins.

Meanwhile, in a related development, Infosys released a statement to stock exchanges in India that it is yet to receive any evidence to corroborate whistleblower complaints against top executives.

“With respect to the anonymous complaints, there is no prima facie evidence that the company has received until date to corroborate any of the allegations made. In any event, the Audit Committee retained the services of the law firm, Shardul Amarchand Mangaldas & Company to investigate the matter,” the company said in a statement to stock exchanges.

However, Infosys stated that the anonymous complaints are still under investigation and the “company is not in a position to determine the concreteness, credibility and materiality of the anonymous complaints”.

The info-tech company also said it will update stock exchanges on the basis of key findings of the investigation reports once these are concluded.

To ensure independence in these investigations, the CEO and CFO have been recused from this matter, chairman Nandan Nilekani had said in an earlier statement to stock exchanges.