In a major boost to Infosys, former employee Satya Dev Tripuraneni has withdrawn his harassment lawsuit against the tech major following successful mediation of the dispute. Infosys, India's second largest software services outsourcer, said the settlement enables the company to avoid the costs and distraction associated with protracted litigation.
Mr Tripuraneni, who filed the lawsuit in California in August, had claimed he quit his job after harassment following his reports of visa abuse. Infosys had rejected his claims.
“We can confirm that we reached an amicable settlement, without any admission of liability," Infosys said in a statement.
This is the second victory for Infosys in the alleged harassment case. Earlier, a federal judge in Alabama had dismissed a lawsuit by an American employee of Infosys, who claimed he was harassed and sidelined after he reported what he believed was visa fraud by managers there.
Judge Myron H. Thompson of a federal court for the Middle District of Alabama had ruled that the allegations by the whistle-blower, Jack B. Palmer, did not meet the standard under Alabama law for a worker to claim negligent or outrageous mistreatment by an employer.
Shares in Infosys closed 0.25 per cent lower at Rs 2,277.25 on the BSE underperforming the broader BSE IT index, which gained 0.7 per cent.