Three US law firms Bronstein, Gewirtz & Grossman, Pomerantz Law Firm and the Rosen Law Firm are preparing to file a class action lawsuit against Infosys to recover losses suffered by Infosys investors following chief executive Vishal Sikka’s resignation on Friday.
Following Sikka’s exit after differences with Infosys founders on Friday, the Infosys share tanked by 12 percent after shocked investors moved to cut their losses in anticipation of a bearish market trend emerging.
As per a report by Yahoo finance said on Saturday that Rosen Law Firm, a global investor rights law firm, is at the forefront of preparing the class action lawsuit to recover losses suffered by Infosys investors.
The firm said it intends to investigate potential securities claims on behalf of shareholders of Infosys Limited, India’s second largest software exporter, arising from allegations that Infosys may have issued materially misleading business information to the investing public.
The firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Since 2014, Rosen Law Firm has been ranked second in the United States by Institutional Shareholder Services for the number of securities class action settlements annually obtained for investors.
TV channel Times Now reported Bronstein, Gewirtz & Grossman saying on Saturday that it was investigating potential claims on behalf of purchasers of Infosys.
The investigation concerns whether Infosys and certain of its officers and/or directors have complied with federal securities laws.
Former Infosys CEO Vishal Sikka’s resignation had come amidst criticism by Infosys founders of decisions by the Bengaluru-headquartered company’s board on issues such as executive compensation, the acquisition of Israeli tech firm Panaya and severance payouts.
“Over the last many months and quarters, we have all been besieged by false, baseless, malicious and increasingly personal attacks…This continuous drumbeat of distractions and negativity…inhibits our ability to make positive change and stay focused on value creation,’ Sikka had written in his resignation letter.
Infosys Chairman R Seshasayee had on Friday thanked Sikka for giving the company a new direction during his tenure. “I thank Vishal for bringing the new level of energy to this company. We will not only take the transition smooth, but we will also make sure that we get the right kind of leadership to move forward,” added Seshasayee while expressing his delight on sharing an extraordinary relationship with Vishal.
Public shareholders currently hold 86.76 per cent stake in Infosys. The company’s board decided to go ahead with a share buyback proposal on Saturday.