Infosys said that it has received no prima facie evidence to support allegations levelled against the company by an anonymous whistleblower last month, prompting its stock to rise.
The Indian IT giant’s share price was battered after it emerged that a group claiming to be company employees had filed a number of whistleblower complaints with the Infosys board and the US Securities and Exchange Commission.
The company’s shares fell around 15 per cent on October 21 when the complaints, which included allegations of accounting irregularities, surfaced. Both Infosys and the SEC opened separate investigations, while the business was also subject to a class-action lawsuit in the US.
But in a letter to India’s National Stock Exchange released on Monday, Infosys said it had not received any supporting evidence to substantiate the allegations. “There is complete absence of prima facie evidence,” the company said, while clarifying that the internal investigation is still ongoing.
It also pushed back against queries from the bourse as to why it had not publicly disclosed the complaints when it received them. Infosys argued in Monday’s letter that, due to the lack of supporting evidence, it was not initially clear whether the complaints were “credible or concrete” and therefore whether they warranted reporting.
Infosys share price rose 5 per cent in Monday morning trading.
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