Infosys says class action lawsuit filed in US court dismissed by plaintiff voluntarily

Tech services giant Infosys Ltd said on Friday that a class action lawsuit filed against the company and its some of its current and former employees in October 2019, has been dismissed by the plaintiff "voluntarily" and "without prejudice".

The class action lawsuit was filed in the Eastern District of New York after whistleblowers allegations against the company in October 2019. "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 told the stock exchanges.

Also read: SEBI, BSE ask Infosys why it didn't disclose whistleblower complaints

Three US investor rights law firms had filed a class-action lawsuit against Infosys after a group of whistleblowers alleged the company and its CEO Salil Parekh of indulging in unethical practices in October 2019. The companies, Bragar Eagel & Squire, The Rosen Law Firm and Howard G Smith, filed lawsuits on behalf of investors who purchased Infosys securities.

Also read: Infosys explains why it didn't disclose whistleblower complaint to regulators

These companies claimed that Infosys disclosed about whistleblower complaints alleging 'unethical practices' by the company's management to "inappropriately boost" short-term revenue and profit. They also said complaints alleged that Infosys CEO Salil Parekh bypassed reviews and approvals of large contracts to avoid accounting scrutiny.

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