Vodafones CEO Sarin In US Row

New Delhi: | Updated: Dec 24 2002, 05:30am hrs
Newly appointed Vodafone chief executive Arun Sarin faces a potentially damaging lawsuit in the US over allegations of Enron-type accounting practices.

A telecom company once run by him has been accused of overstating its revenues and issuing false predictions for its earnings potential, according to international media reports.

According to a class action filed in the US against infrastructure firm InfoSpace, which Mr Sarin headed between April 2000 and January 2001, the company concealed its true operating performance in order to artificially inflate the market price of (its) securities. The lawsuit, filed by New York-based Wolf, Haldenstein, Adler, Freeman & Herz, says that between January 2000 and January 2001 InfoSpace disseminated false and misleading information concerning (its) actual full year 1999 and 2000 financial performance.