Infosys’ Saudi JV partner files lawsuit against it in US court

Infosys’ joint venture partner in Saudi Arabia has filed a lawsuit in a California court alleging that the Bengaluru-based IT services provider violated US law on corruption.

In the lawsuit filed in the District Court of California on December 21 — reviewed by ET — Saudi Prerogative Company (SPC) said Infosys NSE -0.27 % had violated the Racketeer Influenced and Corrupt Organizations Act (RICO). SPC has interests spanning IT, communications, defence and homeland security, construction and transportation in the West Asian nation.

SPC alleged that Infosys falsely claimed that it was not making money from certain contracts and requested it to reduce its 8% commission by at least half or waive it off completely, which led to financial losses.