New Delhi: About three months after a US court dismissed a lawsuit filed by a former employee of Infosys Ltd alleging visa fraud, a second case making similar allegations against the Indian software services company has been withdrawn following successful mediation of the dispute.
The lawsuit was brought by Satya Dev Tripuraneni, a US employee of Infosys. A California court order dismissing the matter has been reviewed by Mint.
“The Dev Tripuraneni lawsuit filed against the company has been withdrawn following successful mediation of the dispute,” Infosys said in a statement on Friday. “We can confirm that we reached an amicable settlement without any admission of liability. This settlement enables us to avoid the costs and distraction associated with protracted litigation.”
The company has not disclosed the terms of the settlement between Tripuraneni and Infosys.
Tripuraneni or his attorneys could not be immediately reached for comment.
The development will bring some relief to the company, which has been struggling with slowing demand from clients in the US and Europe.
In September, US district judge Myron H. Thompson ruled in favour of Infosys in a case brought by a US employee, Jack Palmer, who alleged that the company had been harassing him after he reported instances of business visa fraud.
Judge Thompson said the allegations did not merit legal action under the Alabama state law in the US.
A month before the Palmer case was due for hearing, Tripuraneni filed a lawsuit in the California court alleging that Infosys had been bringing people to the US on short term non-work visas. He also alleged that he faced harassment at the company after he blew the whistle on the wrong-doing.
Infosys’s stock fell 0.25% to Rs.2,277.25 on BSE on a day on which the benchmark Sensex gained 0.46% to 19,317.25 points.
Palmer’s allegations of business visa misuse at Infosys prompted an investigation by the US department of homeland security and a federal grand jury which is ongoing.
In April, Infosys said in a filing to the US Securities and Exchange Commission that the department of homeland security was reviewing the employee eligibility verifications after it found a “significant percentage of errors in Form I-9 of some of its employees working in the country”.
Form I-9 is used by an employer to verify an employee’s identity and establish that the worker is eligible to accept employment in the US.
Sudin Apte, chief executive and principal analyst at consultant Offshore Insights, said the withdrawal of Tripuraneni’s allegations after the dismissal of the Palmer case meant one less hassle to deal with. “However, clients were never really bothered about the allegations for the news to have any material impact on the company’s business,” he said.