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Infosys says not aware of any fresh class-action lawsuit

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

Published: 13th December 2019 12:53 PM  |   Last Updated: 13th December 2019 12:53 PM   |  A+A-

Techies at Infosys campus at Electronic City in Bengaluru (Photo | AP)

Techies at Infosys campus at Electronic City in Bengaluru. This image is used for representational purposes. (Photo | AP)

By IANS

MUMBAI: A day after a US-based law firm announced the filing of a class-action lawsuit against Infosys, the IT services major on Friday said it was not aware of any additional complaints, except for the one filed in October.

"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," in a regulatory filing the Bengaluru-based Indian multinational firm that provides business consulting, information technology and outsourcing services, said.

ALSO READ: Infosys faces class-action lawsuit in US for false financial statements

Regarding 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 for lead plaintiff status.

"It appears that the press communications by the Schall Law Firm is soliciting potential lead plaintiff applicants," it added.

According to the 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 the similar lines. The company, however, after an investigation said it could not find the evidence.

The statement by the law firm said: "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."

At 11.07 a.m., shares of Infosys on the BSE were trading at Rs 706.10, higher by Rs 4.25 or 0.61 per cent from its previous close.



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