As shares tank, US law firm prepares class-action suit against Infosys1 min read . Updated: 22 Oct 2019, 05:22 PM IST
- New York-based Rosen Law Firm said it is investigating potential securities claims on behalf of shareholders of Infosys
- Infosys shares plunged over 16% on Tuesday, the most since April 2013
Bengaluru: Rosen Law Firm, global investor rights law firm, said it is preparing a class action lawsuit to recover losses suffered by Infosys Ltd's investors. On Tuesday, Infosys shares tanked as much as 16.21% to close at ₹643.30 on the BSE. Even on the New York Stock Exchange, Infosys ADRs fell 15% to $8.95 in early trading on Monday.
The New York-based law firm said in a statement it is investigating potential securities claims on behalf of shareholders of Infosys resulting from allegations that Infosys may have issued “materially misleading business information to the investing public."
On 21 October, an anonymous whistleblower group has accused the Infosys management of taking “unethical" steps to boost short-term revenue and profits. In response to this, Infosys said in a statement that “the whistleblower complaint has been placed before the Audit Committee as per the company’s practice and will be dealt with in accordance with the company’s whistleblowers policy."
Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was ranked number one by ISS Securities Class Action Services for number of securities class action settlements in 2017.
Chairman and co-founder Nandan Nilekani pledged a full probe, saying the complaint had been placed before the audit committee on 10 October and before the non-executive members of the board the next day.