USSEC starts investigating complaints against Infosys

USSEC-The US Securities and Exchange Commission will now investigate the whistleblower complaints against the company.

Infosys has found itself in a legal soup as allegations of indulging in unethical practices were slapped against it. Rosen Law Firm, a global investor rights law firm, said in a statement on Monday that it is “preparing a class action lawsuit to recover losses suffered by Infosys investors”.

USSEC-The US Securities and Exchange Commission will now investigate the whistleblower complaints against the company. Infosys will provide the information as per SEBI’s request. The company is also aware of a securities class action lawsuit that has been filed against the company in federal court in the US based on the generalized allegations in the anonymous complaints,” said the company.

Infosys on Tuesday issued a statement attributing to chairman Nandan Nilekani and said the anonymous complaints were first received by an Infosys Board member on September 30. The company’s audit committee was made aware of the charges on October 10 and the company’s non-executive board members discussed the matter on October 11, when they met to finalise the second quarter results.

The mistake they (Infosys) made was that they should have informed everyone (regulators and investors),” the person told ET.

“They should have said that they have found this and that auditors have seen this and there is nothing material, but (the company) will have a formal process (of investigation).”