Infosys’s out-of-court settlement fails, may impact operation

Bangalore: Infosys Technologies has indicated that the option of out-of-court settlement in the sexual harassment and wrongful termination suit has fallen through and the lawsuit might go to trial. Any unfavourable resolution of this lawsuit could adversely impact the results of its operation, the company has cautioned.

A US-based former employee, Reka Maximovitch, had recently filed a sexual harassment suit against the company and its former global sales head, Phaneesh Murthy, for wrongful termination. Subsequently, Murthy had stepped down to defend the lawsuit.

“Infosys had initiated a voluntary settlement discussions with the plaintiff. It appears that the settlement may not be possible in the near term and the lawsuit may go to trial,” says Infosys CFO and board member Mohandas Pai. “No trial date has been set yet and Infosys will vigorously defend this matter.”

The company, he says, could not predict whether the performance would be affected this or next fiscal. “We are dealing with uncertainties. Since nobody can predict the outcome of such a trial, we are issuing a warning based on the advice of our lawyers.”

Following the sexual harassment suit, Infosys has taken several steps within the company to strengthen its grievance redress procedures and anti-sexual harassment policy. “We have conducted several training programmes, widened the dissemination of information and met employees on this issue,” Pai adds.