The Hindu Business Line : Phaneesh settles harassment law suit out-of-court: Infosys

INFOSYS Technologies said on Wednesday that its former director and global sales head, Mr Phaneesh Murthy, has recently settled the sexual harassment lawsuit filed against him by former employee, Ms Jennifer Griffith, for $8,00,000 (approximately Rs 3.6 crore).

The Chairman and Chief Mentor of Infosys, Mr N.R. Narayana Murthy, in a notice to the BSE said: "Infosys has learnt that the sexual harassment lawsuit filed by Ms Jennifer Griffith, a former employee, against the company and Mr Phaneesh Murthy, a former director, has been settled by Mr Phaneesh Murthy and Ms Griffith, shortly before the October 29, 2004 trial date. Infosys has now learnt that the settlement agreement was recently signed by the parties - Mr Phaneesh Murthy and Ms Griffith."

Infosys said it was not a party to the settlement and did not contribute any money towards the settlement. Infosys was also not a signatory to the settlement agreement, the statement said. This settlement released Infosys from all claims and liabilities alleged in the lawsuit, it added.

Infosys, the statement said, learnt from its insurers' counsel that the insurers contributed $4,00,000 towards the settlement and this represented 50 per cent of the total payments. The remaining 50 per cent, the statement said, was paid by Mr Phaneesh Murthy, as the company refused to make any contributions to the settlement. Despite this settlement, Infosys has reserved all rights against Mr Phaneesh Murthy to make any claims it may have against him.

Commenting on the development, Mr Phaneesh Murthy, currently the CEO at iGATE Global said, "After the last iGATE Global board meeting, taking into consideration the momentum we are seeing in the company, contrary to my earlier stand in this regard, I have chosen to participate in a settlement to close this case."

"This has been a very difficult decision for me, a clash of my personal beliefs and the responsibilities of running a large public company, and the implications of a CEO taking weeks/months off to fight a lawsuit. This is to ensure that this chapter is behind us, and in no way distracts from my current responsibilities at iGATE," Mr Phaneesh Murthy said in a statement.

"Due to the nature of the closure, I will not be able to comment any further on this issue," Mr Murthy added.

This is the second sexual harassment lawsuit that has been settled out-of-court. This settlement comes ahead of the Infosys' proposed second sponsored ADS issue in which the company plans to offer about 1.6 crore shares as part of the offering.

The earlier lawsuit filed by former Infosys employee Ms Reka Maximovitch against the company and Mr Phaneesh Murthy was also settled out-of-court for $3 million in May last year.

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