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More trouble for Infosys! Murthy's charges trigger probe, class-action suit in US

by August 19, 2017 General

NEW DELHI: Three US law firms Bronstein, Gewirtz & Grossman, Pomerantz Law Firm, and Rosen Law Firm, have initiated investigation against Infosys amid concerns over whether the company’s directors are engaged in securities fraud or other unlawful business practices, Times Now reported.

Rosen Law Firm is also preparing a class action lawsuit to recover losses suffered by Infosys investors, the report said.

Bronstein, Gewirtz & Grossman said that it was investigating potential claims on behalf of purchasers of Infosys. The investigation concerns whether Infosys and certain of its officers and/or directors have complied with federal securities laws, Times Now reported.

Public shareholders hold 86.76 per cent stake in the IT major. Vanguard, Oppenheimer, Abu Dhabi Investment Authority and the government of Singapore are some of the key foreign portfolio investors in the company.

The news has come a day after Infosys shares tumbled 9.6 per cent on Friday after CEO and MD Vishal Sikka resigned following a ‘misguided’ campaign – as the company’s board called it – by none other than the company’s co-founder NR Narayana Murthy.

The board of second largest IT firm Infosys is scheduled to consider a share buyback proposal later on Saturday.