Infosys faces big loss after 6 years; Lawsuit Investigation has begun

After the whistleblower complaint, the shares of IT biggie Infosys faced a major drop by 16.19% on October 22 (Tuesday). As per NDTV report the shares of Infosys investors worth INR 53, 000 crores were lost.

As per News Minute, it is the biggest single-day loss after April 12, 2013. Yesterday, we reported on the allegations by anonymous employees against the CEO Salil Parekh and CFO Nilanjan Roy for "Unethical Practices".

Therefore, a massive fall in shares after such a whistleblower complaint has grabbed the spotlight of IT biggies. Reportedly, the company's market capitalization value eroded by Rs 43, 925 which is over $6 billion and the trading value went down 14.78% to Rs 654.40.

Nandan Nilekani, the chairman of Infosys confirmed that two anonymous complaints were received on September 30 and September 20, 2019. Further, he added that the complaints were sent to the notice of Audit Committee and non-executive members on October 10, 2019, and October 11, 2019, respectively.

The whistleblower complaint mostly alleges CEO's illicit accounting practices and exploiting the accounts for personal expenses such as international travel to the US and Mumbai. It has to be mentioned that the letter was written under the name "Ethical Employees". 

The complaint was intentionally written to the Whistleblower protection program, Washington DC and according to the latest reports, the US law firms have taken notice of the massive fall in the stock market and began an initial investigation to analyze the grounds to file class action lawsuit against the company.