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Many investors want in on suit: Phillip Kim, lead attorney on the lawsuit

Apart from Rosen Law Firm, 3 other US firms have put out notices for filing class action suits against Infosys.

Updated: Oct 25, 2019, 08.40 AM IST
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The suit seeks to represent people or entities that acquired Infosys shares from July 7, 2018 to October 20, 2019.
Bengaluru|Mumbai: Many investors of IT services provider Infosys have reached out to join a class-action lawsuit against the company, the New York-based law firm which filed the suit on Wednesday told ET.

“Many investors have already contacted us and joined the case,” Phillip Kim, lead attorney on the lawsuit, told ET in an email.

Rosen Law Firm, which filed the suit, also listed Infosys’ former chief financial officer M D Ranganath as a defendant, while making no mention of current CFO Nilanjan Roy. The lawsuit names Infosys, its CEO Salil Parekh and Ranganath, as defendants. ET has seen a copy of the lawsuit.

Rosen Law Firm is the first to file a class action suit, although at least three other firms have put out notices saying they were looking at filing securities class action suits.

This came after ET reported on Monday that a whistleblowers’ group had alleged that the Bengaluru-based company’s top executives were using “aggressive” accounting tactics and hiding information from auditors to boost revenue and profit.

The suit seeks to represent people or entities that acquired Infosys shares from July 7, 2018 to October 20, 2019.

Ranganath’s resignation was announced in August 2018, but he remained CFO until November last year, while Infosys carried out a search for his successor, implying that he was CFO for part of the class action period the lawsuit is targeting.

Ranganath did not respond to ET’s messages and calls seeking comments.

On whether the inclusion of Ranganath’s name and omission of Roy’s was an error, Kim said this was merely an initial filing. “This is the initial complaint, once the current lead plaintiff process is completed the operative complaint will be filed,” Kim said. “Ordinarily, the amended complaint contains materially more information and other changes.

The amended complaint filed by the then lead plaintiff will be the one defendants will respond to.”
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