Biznextindia : Responding to reports that the US based Schall Law Firm has filed a class lawsuit against it, Indian IT giant Infosys on Friday said that it is not aware of any additional complaints other than the initial complaint filed on October 24.
“The Company is aware of several media stories referencing an additional securities class action lawsuit against Infosys. The Company is not aware of any additional complaints, other than the initial complaint, which was disclosed on October 24, 2019. The Company notes that it is not uncommon for plaintiffs’ lawyers to issue press releases or other media communications asking potential plaintiffs to contact them in order to apply for lead plaintiff status in an existing lawsuit. It appears that the press communications by the Schall Law Firm is soliciting potential lead plaintiff applicants” Infosys said in a statement.
The Shares of Infosys (INFY) is currently trading at Rs.705.90, up 0.58% in the Bombay Stock Exchange (BSE). At the National Stock Exchange (NSE) it is trading at Rs. 706 up 56%.
Schall Law firm is a Las Angeles based shareholder rights litigation firm. According to the lawsuit filed by the Firm, Infosys made false and misleading statements to the market and used improper recognition of revenue to boost short-term profits.
This comes after a similar whistleblower complaint against Infosys and its CEO Salil Parekh in October this year. However, later the company after an internal investigation had said that it did not find any evidence in this regard.