Bengaluru: Infosys’ joint venture partner in Saudi Arabia has filed a lawsuit in a California court alleging that the Bengaluru-based IT services provider violated US law on corruption.
In the lawsuit filed in the District Court of California on December 21 — reviewed by ET — Saudi Prerogative Company (SPC) said Infosys had violated the Racketeer Influenced and Corrupt Organizations Act (RICO). SPC has interests spanning IT, communications, defence and homeland security, construction and transportation in the West Asian nation.
SPC alleged that Infosys falsely claimed that it was not making money from certain contracts and requested it to reduce its 8% commission by at least half or waive it off completely, which led to financial losses.
The Saudi firm, however, said it discovered later that the IT services provider had made substantial money on the same contracts. Infosys confirmed to ET that a lawsuit had been filed and said it would defend itself vigorously against the allegations.
On Wednesday, Infosys shares fell 0.32% to Rs 1,246.20 apiece on the BSE even as the benchmark Sensex ended the day 0.8% higher at47,746.22 points.
In the lawsuit filed in the District Court of California on December 21 — reviewed by ET — Saudi Prerogative Company (SPC) said Infosys had violated the Racketeer Influenced and Corrupt Organizations Act (RICO). SPC has interests spanning IT, communications, defence and homeland security, construction and transportation in the West Asian nation.
SPC alleged that Infosys falsely claimed that it was not making money from certain contracts and requested it to reduce its 8% commission by at least half or waive it off completely, which led to financial losses.
The Saudi firm, however, said it discovered later that the IT services provider had made substantial money on the same contracts. Infosys confirmed to ET that a lawsuit had been filed and said it would defend itself vigorously against the allegations.
On Wednesday, Infosys shares fell 0.32% to Rs 1,246.20 apiece on the BSE even as the benchmark Sensex ended the day 0.8% higher at47,746.22 points.