Friday was a busy day at Infosys as the IT giant announced the resignation of its Chief Executive Officer and Managing Director, Vishal Sikka. Sikka’s resignation comes amid criticism by Infosys’ founders of decisions by Infosys’ board, including executive compensation and severance payouts. “Over the last many months and quarters, we have all been besieged by false, baseless, malicious and increasingly personal attacks…This continuous drumbeat of distractions and negativity…inhibits our ability to make positive change and stay focused on value creation,’ he had written in his resignation letter.
As soon the news came out, a direct impact was seen on the Infosys share which went down by 12%. The IT giant would have been hoping for a better Sunday but in a big setback, Rosen Law Firm, a global investor rights law firm, announced that it is investigating potential securities claims on behalf of shareholders of Infosys Limited (INFY) resulting from allegations that Infosys may have issued materially misleading business information to the investing public, as per a report by Yahoo finance.
The report said that Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by Infosys investors. The firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Since 2014, Rosen Law Firm has been ranked #2 in the nation by Institutional Shareholder Services for the number of securities class action settlements annually obtained for investors.
Sikka’s resignation came as a big shock on Friday morning. Infosys Chairman R Seshasayee thanked Sikka for giving the company a new direction during his tenure. “I thank Vishal for bringing the new level of energy to this company. We will not only take the transition smooth, but we will also make sure that we get the right kind of leadership to move forward,” added Seshasayee while expressing his delight on sharing an extraordinary relationship with Vishal.