Infosys faces class-action lawsuit in the US

A US-based based shareholder rights litigation firm, Schall Law Firm has said that it has filed a class-action lawsuit against tech giant Infosys over alleged impropriety in financial statements.

According to the complaint, Infosys had made false and misleading statements to the market and used improper recognition of revenue to boost short-term profits.

The complaint says that CEO Salil Parekh had skipped standard reviews of large deals to avoid accounting scrutiny. In fact, the company’s finance team was pressured to hide details of these deals and other accounting matters from auditors and the company’s Board of Directors. Based on these facts, the company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Infosys, investors suffered damages.