Infosys Limited Class Action Lawsuit
- Company Name
- Infosys Limited
- Stock Symbol
- Class Period
- July 7, 2018 to October 20, 2019
- Motion Deadline
- December 22, 2019
- Eastern District of New York
On October 23, 2019, the Infosys Limited class action lawsuit was filed charging Infosys and certain of its officers with violations of the Securities Exchange Act of 1934. The Infosys class action lawsuit was commenced in the Eastern District of New York on behalf of purchasers of Infosys publicly traded securities between July 7, 2018 and October 20, 2019 (the “Class Period”) and is captioned Batwara v. Infosys Limited, et al., No. 1:19-cv-05959.
Infosys provides consulting, technology, and outsourcing services in North America, Europe, India, and internationally. Infosys describes itself as “a global leader in next-generation digital services and consulting . . . [that] enable[s] clients in 45 countries to navigate their digital transformation.”
The Infosys class action lawsuit alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Infosys’s business and financial results. Specifically, defendants failed to disclose that Infosys was improperly recognizing revenues to inflate short-term profits, its CEO, Salil Parekh, had by-passed reviews and approvals for large deals to avoid accounting scrutiny, and Infosys management had pressured Infosys’s finance team to hide information from auditors and Infosys’s Board of Directors. As a result of this adverse information being withheld from the market, Infosys securities traded at artificially inflated prices during the Class Period, with the price of its American Depositary Shares (“ADSs”) reaching a high of more than $12.50 per ADS.
Then, on October 21, 2019, before the market opened, the Economic Times reported that an anonymous group calling itself “ethical employees” had sent a whistleblower complaint to Infosys’s audit committee and the U.S. Securities and Exchange Commission (“SEC”). According to the article, the whistleblower complaint alleges, among other things, that Parekh was using “unethical practices” to boost short-term revenues and profits, that the employees “were asked not to fully recogni[z]e costs, like visa costs, to improve profits,” that in “large contracts like Verizon, Intel and [joint ventures] in Japan . . . revenue recognition matters are forced which are not as per accounting standards,” and that “large deals approvals have irregularities, [with] the Chief Executive Officer . . . bypassing reviews and approvals and instructing sales not to send emails for approval” and to “make wrong assumptions to show margins.” The whistleblower complaint also stated that the employees have “emails and voice recordings [they] will share with investors” if asked. On this news, the price of Infosys ADSs fell 12% to close at $9.29 per ADS on October 21, 2019.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Infosys publicly traded securities during the Class Period to seek appointment as lead plaintiff in the Infosys class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Infosys class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Infosys class action lawsuit. An investor’s ability to share in any potential future recovery of the Infosys class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Infosys class action lawsuit or have questions concerning your rights regarding the Infosys class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. Lead plaintiff motions for the Infosys class action lawsuit must be filed with the court no later than December 22, 2019.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.