Securities Law News

Infosys Investors Drop Proposed Class Suit Over Whistleblowing

May 22, 2020, 8:34 PM

Infosys Ltd. won’t have to face a would-be class complaint involving a whistleblower’s accounting allegations after investors agreed to drop the New York federal district court case.

The India-based IT services firm and its investors filed a stipulation of dismissal Thursday, and Judge Eric R. Komitee of the U.S. District Court for the Eastern District of New York ordered the suit dismissed without prejudice Friday.

The investors accused Infosys of misleading them in October 2019 after a whistleblower letter alleged CEO Salil Parekh told the company’s finance team to refrain from fully recognizing costs in order to improve profits.

Infosys turned the whistleblower allegations over to its audit committee, according to a company press release issued the day before the investors sued.

The company cleared its CEO of wrongdoing in January after the audit committee investigated.

Wilson Sonsini Goodrich & Rosati PC represented Infosys and Parekh. Robbins Geller Rudman & Dowd LLP served as lead counsel to the class.

The case is Batwara v. Infosys Ltd., E.D.N.Y., No. 19-cv-05959, dismissed without prejudice 5/22/20.

To contact the reporter on this story: Jennifer Bennett in Washington at jbennett@bloomberglaw.com

To contact the editor responsible for this story: Rob Tricchinelli at rtricchinelli@bloomberglaw.com

To read more articles log in. To learn more about a subscription click here.