Infosys Says Class Action Lawsuit Against It Dismissed In US Court; Shares Gain

Shares of Infosys Ltd gained as much as 2.34 percent to Rs 687.95 on Friday after the company in a stock exchange filing informed that a class action lawsuit filed against it and some of its employees in a US Court was dismissed.

"As previously announced, in October 2019, a class action lawsuit was filed in the United States District Court against the Company and certain of its current and former officers. 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."

The complaint filed in October last year had alleged that Infosys had false and misleading statements to the market and used improper recognition of revenue to boost short-term profits. Allegations were made on CEO Salil Parekh that he has skipped standard reviews of large deals to avoid accounting scrutiny.