Three US law firms to investigate alleged 'securities fraud' in Infosys
The global investor rights law firm, Rosen Law Firm, along with two other US law firms Bronstein, Gewirtz and Grossman and Pomerantz Law Firm will be investigating potential securities claims on behalf of shareholders of Infosys, following the exit of Vishal Sikka as CEO & MD of the company. File photo
Rosen Law Firm claimed that the investigation is “resulting from allegations that Infosys may have issued materially misleading business information to the investing public.”
While Bronstein, Gewirtz and Grossman said that the investigation concerns whether “Infosys and certain of its officers and/or directors have complied with federal securities laws.”
According to reports, Rosen Law Firm is also preparing a class-action lawsuit to recover losses suffered by Infosys investors.
On Friday, Infosys announced the resignation of its Chief Executive Officer, Vishal Sikka. Sikka’s resignation comes amid criticism by Infosys’ founders of decisions by Infosys’ board, including executive compensation and severance payouts. Sikka’s resignation letter stated, “Over the last many months and quarters, we have all been besieged by false, baseless, malicious and increasingly personal attacks…This continuous drumbeat of distractions and negativity…inhibits our ability to make positive change and stay focused on value creation.”
As a result of Sikka's resignation, shares of Infosys fell sharply by 9.6% during intraday trading on August 18, 2017.