Infosys faces class action lawsuit in us for false financial claims.

The Schall law firm a shareholder rights litigation firm in Los Angeles filed a lawsuit against Infosys for use of false financial statements to boost short term profits. Schall law firm represents investors from around the world they focus on securities class action lawsuits and shareholder rights litigation. According to the lawsuit Infosys used false and misleading financial statements and in proper recognition of revenue to boost profits. 

 A few months back there was accusation against Infosys CEO Salil Parekh by anonymous whistle blowers who called themselves by the name ‘ethical employees’ on similar matters. According to them CEO Parekh and CFO Nilanjan Roy used unethical practices to boost financial statements and they were not adhering to the accounting standards. However after investigation on the company not enough evidence was found to support the claims.

According to the lawsuit in US CEO Parekh skipped reviews of large deals to avoid accounting scrutiny. The accountants were also asked to hide details of accounting from auditors and company’s board of directors. By these facts the company’s statements were false and misleading and now the investors were suffering the damage. Schall made a statement that they want investors with losses in excess of $100,000 to contact the firm.

The class action lawsuit against Infosys  limited listed on NYSE for violation of 10(b) and 20(a) of securities exchange act of 1934 and rule 10b-5 promulgated there under by us securities exchange commission. Investors who purchased the company’s securities between July 7, 2018 and October 20, 2019 had been asked to contact the firm before December 23 2019. After the lawsuit Infosys shares went down by 2.50%, the stock was down to Rs18.35 to Rs702.45 on BSE.