Edit: 24–10–2019
New York-based law firm Rosen Law has said that it is preparing for the class-action suit to recover the losses by Infosys Investors. The New York-based law firm said in a statement 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." Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was ranked number one by ISS Securities Class Action Services for a number of securities class action settlements in 2017.
We will ensure that the generalised allegations are investigated to the fullest extent. Additionally, to ensure independence in these investigations the CEO and CFO have been recused from this matter.” Nandan Nilekani, Chairman, Infosys.
Our View:
Many market experts in their TV Shows and in Educational Seminars tell that invest in ‘Quality Company and Management’. But nobody really knows until winning or losing big. Now coming to the question, the issues raised are Corporate Governance Issues and they are very serious. Such things are not that which is so simple, seeing the trends that Technology Companies aren’t paying a good salary to freshers or even to experienced people, it shows that there may be some concerns which they are hiding. Technology has created wealth over the past two decades but the same story cannot continue for a long-long time. I am posting the letter of the so-called ‘Ethical Employees’ which is submitted to the board of Infosys and United States Securities Exchange Commission.
As the markets were closed on Monday due to State Election in Maharastra. The concern is also that the letter is dated 20th September 2019 and there was a huge OI build up in the put of 740 this month. As of now the as per the Whistle Blower Policy the issue is raised in front of Audit Committee. And the ADR in Nasdaq was trading 15% down and now also the stock is 15% down in NSE and BSE. As of now, we will say to avoid any new positions.
Technically the stock has touched the weekly and monthly support around 637, breaking it will be a great cause.
