A day after the exit of Vishal Sikka as the MD and CEO of Infosys, three US-based law firms have launched an investigation against the IT major.
Bronstein, Gewirtz & Grossman, Pomerantz Law Firm, and Rosen Law Firm have launched investigations into matter of securities fraud, unlawful business practices and misleading information.
On Friday morning, Vishal Sikka announced his resignation as the MD and CEO of the country’s second largest IT firm, which led to the stock plunging.
Infosys is also listed on the New York Stock exchange.
“Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Infosys Limited ("Infosys" or the "Company") (NYSE: INFY). The investigation concerns whether Infosys and certain of its officers and/or directors have complied with federal securities laws,” the lawn firm says on its website.
According to a press release by global investor rights law firm, Rosen Law Firm, it is investigating potential securities claims on behalf of shareholders of Infosys resulting from allegations that Infosys may have issued materially misleading business information to the investing public.
The release states that on the news of Vishal Sikka’s resignation, shares of Infosys fell sharply during intraday trading on August 18, 2017.
Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by Infosys investors.
Pomerantz LLP has announced that it is is investigating claims on behalf of investors of Infosys. As per a statement by the law firm, “the investigation concerns whether Infosys and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.”
Pomerantz says on its website that on news of Sikka's resignation, Infosys's American Depositary Receipt price has fallen as much as $1.43, or nearly 9%, during intraday trading on August 18, 2017.
In India too, the news of Sikka’s resignation caused the stock of Infosys to plunge by about 10% on Friday wiping off nearly Rs 22,000 crore from the company’s market cap.
Vishal Sikka resigned as the MD and CEO of the company following a constant ‘drumbeat’ of allegations against him and the board, which intereferes with the company’s ability to make a positive change and create value for the company, which is on a transformational path.
The search for a new MD and CEO is on and in the meanwhile, Sikka will continue as the executive vice chairman of the company while COO UB Pravin Rao has taken over as the interim MD and CEO until the company appoints a new person for this role.
The board of Infosys has already formed a committee to look for Vishal Sikka’s successor and has said a new MD and CEO will be appointed before March 31, 2018.