Infosys shares tank after whistleblower accuses CEO of unfair means
The country’s IT giant Infosys has received a major setback in the US. A group of whistleblowers have accused the company’s CEO Salil Parekh of trying to unfairly increase the company’s earnings and profits. Following this allegation, ADR’s share of the listed company has fallen by about 16 percent. A group called Ethical Employees has complained to the board of the US Securities and Exchange Commission of Infosys.
The complainants allege that Salil Parekh ignored the review and approval process for the big deal and in the last few quarters, there were many such deals in which there was no margin at all. The whistleblower group has also claimed that they also have e-mail and recordings.
The whistleblower group emailed the board of the US SEC and Infosys a month ago, while the US Labor Department was also informed via email on 3 October. Infosys is a listed company on the New York Stock Exchange. It has more than 2.28 lakh employees. The company’s market capitalization is about $ 47.7 billion. Its effect was seen in the Indian stock exchange as well with INFY share trading around 14% percent down at 12 noon.
