Not aware about fresh complaints against the company: Infosys
New Delhi : Asia's second-largest IT services provider Infosys Ltd has said that they are not aware of any additional complaints against the company’s management over alleged accounting malpractices. The statement came after few media reports claimed of a fresh class-action lawsuit filed against the firm.
"The company is aware of several media stories referencing an additional securities class action lawsuit against Infosys. The company is not aware of any additional complaints, other than the initial complaint, which was disclosed on 24 October 2019," the company said in a regulatory filing.
In the market, the Infosys shares were trading 0.68% higher than the last day on Friday morning.
A US firm has claimed that they had filed a class-action lawsuit against Infosys, which made false and misleading statements to the market and used improper recognition of revenue to boost short-term profits.
"The company notes that it is not uncommon for plaintiffs’ lawyers to issue press releases or other media communications asking potential plaintiffs to contact them in order to apply for lead plaintiff status in an existing lawsuit. It appears that the press communications by Schall Law Firm is soliciting potential lead plaintiff applicants," Infosys said.
Earlier, an anonymous employee had blamed Infosys of carrying out unethical accounting practices to shore up revenue and profits.
Reacting to it, Infosys had claimed that they will take all the necessary action in the matter considering the claims of the whistleblower.
“…Infosys is committed to defining and following highest corporate governance standards," Nilekani had told analysts in a conference call, allaying their concerns.
Nilekani said the company could not give a timeline on when the investigation will close, but a summary of the ongoing investigation will be provided after it is completed.