In yet another blow to Infosys, the second-biggest Indian IT giant which has been busy in addressing internal issues after Vishal Sikka’s resignation as MD & CEO, 3 prominent US law firms have initiated investigations against the company to probe whether the company and its senior officials were involved in securities fraud or were part of other unlawful business practices. The report was first published by Times Now.
The law firms, which have initiated the investigation, include Bronstein, Gewirtz & Grossman, Pomerantz Law Firm, and Rosen Law Firm. Out of these firms, Rosen Law Firm is also reportedly filing a class action law suit to recover the losses incurred by the investors of the company.
Bronstein, Gewirtz & Grossman stated that the law firm will be investigating whether some of the senior officials and reportedly directors of Infosys were involved in illegal practices according to US Federal Law. These law suits are based on the reports of potential purchasers of Infosys.
According to the report, 86.76% shares in Infosys are owned by public shareholders. Some of the key portfolio investors in the company include Vanguard, Oppenheimer, Abu Dhabi Investment Authority and the government of Singapore.
The current news has surfaced while Infosys is being talked about highly in media, largely because of the high-profile resignation which took place yesterday. After the news of Vishal Sikka resigning, Infosys shares fell by over 9 percent to record a one-year low.
Just In : Infosys has announced a share buyback program worth ₹13,000 crores at ₹1150 per share. The transaction will provide 25% premium to investors over the last traded price of Infosys stock on Friday. Read more details here.