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New harassment suit strikes Infosys, no alarm bells

business Updated: Aug 11, 2012 01:36 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Yet another former employee of Infosys has filed a lawsuit in the US courts alleging that the software services giant misused US visas. It is the second such instance for Infosys after Jack Palmer — one of its former employees — had filed a legal suit alleging US visa misuse by the firm.

Analysts, however, have dubbed the issue as a minor irritants for the IT giant.

This time around, Satya Dev Tripuraneni, a US citizen and a former employee of Infosys in the US, filed a lawsuit in a California court early this month alleging that though he had brought the issue of the alleged misuse of visas to the notice of the Infosys management, no action was taken. http://www.hindustantimes.com/Images/Popup/2012/8/11-08-12-biz-04.jpg

Infosys confirmed the lawsuit. “Shortly after Mr. Tripuraneni filed his complaint with the Infosys whistle blower team as per our policy, the company launched a comprehensive investigation of his allegations. That investigation is continuing,” the company said.

The company added that it is concentrating resources and attention on the investigation. “We feel this is the prudent and responsible course of action at this time.” “I feel this (visa row) is a minor issue and not much should be read into it before a final decision is taken,” said Ankita Somani, research analyst, IT, at Angel Broking.

Dipen Shah, head of private client group research at Kotak Securities, said if Infosys looses the lawsuits, its image could take a hit. Shah added,“...we still do not have an estimate of the financial implications for the company if it looses the lawsuit.”

Meanwhile, Infosys is already fighting a lawsuit filed by another former employee, Jack Palmer, who had also alleged US visa misuse by the company. Infosys had dismissed Palmer’s charges. The trial on Palmer’s charges is scheduled to begin on August 20 in the US.