Stocks

Infosys down 2.50% as US law firm files suit

BL Internet Desk | Updated on December 12, 2019 Published on December 12, 2019

Infosys shares were down nearly 2.50% on Thursday after a US litigation firm, Schall Law Firm, has filed a class action lawsuit against Infosys, accusing the company of making false and misleading statements to investors. The stock was down Rs 18.35 or 2.50% to Rs 702.45 on the BSE today.

Schall Law Firm, which represents investors around the world, specialises in securities class action lawsuits and shareholder rights litigation.

The law firm, in a filing to the SEC, said that investors who purchased Infosys securities between July 7, 2018 and October 20, 2019, could participate in the lawsuit by December 23.

According to the complaint, Infosys made false and misleading statements to the market. It used used improper recognition of revenue to boost short-term profits. CEO Salil Parekh skipped standard reviews of large deals to avoid accounting scrutiny.

Published on December 12, 2019
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