NEW DELHI :
Infosys today announced that a class action lawsuit filed against the IT major and some of its employees in the United States District Court has been dismissed.
The complaint, which was filed in the Eastern District of New York, was brought on behalf of a class consisting of persons or entities who purchased the Company’s publicly traded securities between July 7, 2018 and October 20, 2019, and alleged claims for violations of the US federal securities laws. On May 21, 2020, the plaintiff voluntarily dismissed the lawsuit without prejudice," Infosys said in a statement.
In October 2019, a class action lawsuit was filed in the United States District Court against Infosys and some of its current and former officers. According to the complaint, Infosys was alleged to have made false and misleading statements to the market and used improper recognition of revenue to boost short-term profits.
The Schall Law Firm, a shareholder rights litigation firm based in Los Angeles, had filed the complaint alleging that CEO Salil 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.
In the BSE, Infosys shares opened in the green today. The stock was up by 1.93% at ₹685 as of 9:21 am.