ٹائمس آف انڈیا – تین مزید امریکی قانون ساز کمپنیوں نے انفسوس کے خلاف مقدمہ دائر کیا

ٹائمس آف انڈیا – تین مزید امریکی قانون ساز کمپنیوں نے انفسوس کے خلاف مقدمہ دائر کیا


Translating…

Three US investor rights law firms have filed a class-action lawsuit against Infosys after a group of whistleblowers alleged unethical accounting practices. Bragar Eagel & Squire and Howard G Smith have filed a class-action lawsuit on behalf of investors while investor rights law firm Bernstein Liebhard is also investigating potential securities fraud claims.

Highlights

  • The firms filing suits could have a case if they can establish that there was indeed financial fudging
  • The suits have not been admitted yet by the court

(File photo) (File photo)

Additionally, the law offices of Howard G Smith announced that a class-action lawsuit has been filed on behalf of investors who purchased Infosys securities in the same period. “Infosys disclosed that it had received whistleblower complaints alleging ‘unethical practices’ by the company’s management to inappropriately boost short-term revenue and profit. Moreover, the complaints alleged that the company’s chief executive officer, Salil Parekh, bypassed reviews and approvals of large contracts to avoid accounting scrutiny,” it said.

Another investor rights law firm Bernstein Liebhard is also investigating potential securities fraud claims on behalf of shareholders of Infosys. TOI previously wrote that Rosen Law Firm had filed a class-action against Infosys.

Shriram Subramanian, MD of proxy advisory firm InGovern Research Services, said if the court admits a lawsuit, the law firm can call experts and they can ask for email records which they can scrutinise, providing them with much more data than what is available today. “Under law, they (Infosys) are obliged to share internal records with shareholders. They can even call the CFO and ask him about the details of revenue recognition,” he said.

Investors lost substantially from the share price drop following the recent allegations. The firms filing suits could have a case if they can establish that there was indeed financial fudging. The suits have not been admitted yet by the court. For it to be certified as a class action, an investor who has been harmed has to come forward as a lead plaintiff. Whether that will happen is not clear.

more from times of india Business