Just days after news emerged about whistleblower complaints filed with the US securities regulator against Infosys, as many as five US law firms have filed class action lawsuits in US courts, posing fresh challenges for the troubled IT major that is facing increased regulatory scrutiny over allegations of financial irregularities by its top executives.
On Monday, Zhang Investor Law announced a class action lawsuit on behalf of Infosys shareholders who bought shares of the IT company between July 7, 2018 and October 20, 2019.
Last week, Bernstein Liebhard, a nationally acclaimed investor rights law firm, announced that a securities class action has been filed on behalf of investors that purchased or acquired the securities of Infosys Limited. The lawsuit filed in the United States District Court for the Eastern District of New York seeks to recover damages for Infosys investors under the Securities Exchange Act of 1934.
Law offices of Bragar Eagel and Squire and Howard G. Smith also had announced that a class action lawsuit has been filed against Infosys and encouraged investors to contact the firms.
Earlier, a class action lawsuit filed by Rosen Law Firm, that represents investors across the globe, had demanded a jury trial and accused the IT major of making false and misleading statements, besides failing to make appropriate disclosures, according to a statement by the firm.
Another national shareholder rights litigation firm, The Schall Law Firm, said it is investigating claims on behalf of investors of Infosys for violations of the securities laws.
"Investigating claims on behalf of investors of Infosys for violations of the securities laws. Investigation focusses on if the company issued false and/or misleading statements to investors. Encourage investors with losses over $100,000 to contact us," the law firm said in a statement posted on its website.
An unnamed group sent letters to Infosys’ Board and the US Securities and Exchange Commission alleging that the company had taken “unethical” steps to inappropriately boost short-term revenue and profit. The letter alleged that CEO Salil Parekh was bypassing standard reviews of large contracts in order to skirt accounting scrutiny.
Infosys’ shares took a beating on the stock exchanges, including in the US, after this news. Rosen Law Firm asked investors who purchased shares of Infosys to visit its website to join the class action.
First Published: Oct 22, 2019 4:24 PM IST
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