Three US law firms to investigate alleged 'securities fraud' in Infosys

Three US law firms to investigate alleged 'securities fraud' in Infosys

"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.

"I am anguished by the allegations, tone and tenor of its statements", said Murthy in an e-mail to the media hours after the software major's Chief Executive Vishal Sikka resigned earlier in the day. Sikka announced his sudden resignation following a protracted war of words with the founders group, led by Narayana Murthy.

The offer price at Rs 1,150 per share is Rs 226.90 more than Rs 923.10 per share closing price on Friday when it plunged 9.6 per cent after Sikka's resignation spooked investors and is at around 18 per cent premium of the August 16 closing price.

Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by Infosys investors.

More news: Grace Mugabe's R45m SA mansion in the spotlight

The buyback price represents a premium of 19.08% and an 18.7% over the volume weighted average market price of the equity shares on BSE and NSE during the three months preceding the date of intimation to the stock exchanges of the board meeting, according to the filing.

With offices in New York, Paris, Chicago, and Los Angeles, the Pomerantz Firm is one of the premier firms in the areas of corporate, securities, and antitrust class litigation.

While Pravin Rao, now chief operating officer, has been named interim CEO, Sikka will become executive vice- chairman for United States dollars 1 annual salary to help find new MD and CEO latest by March 31, 2018. He will receive an annual salary of $1 during his tenure as executive vice-chairman and will continue to focus on strategic initiatives, key customer relationships and technology development.

The shares of Infosys had jumped by 5 per cent on Thursday after the announcement however, stock slipped over 13 per cent in intra day trade to touch its multi-year low of Rs 884.20 in trade on Friday.

Related Articles