Saudi firm files corruption lawsuit against Infosys

Bengaluru: Infosys joint venture partner in Saudi Arabia – Saudi Prerogative Company (SPC) has filed a lawsuit in California, USA, alleging that the Bengaluru-based IT company provider violated US law on corruption.

Saudi firm alleged that Infosys dishonestly claimed that it was not making money from specific contracts; therefore, it requested to reduce its commission or waive it to reduce its financial loss. Later Saudi company learned that Infosys as an IT services provider had made substantial money and profit on the same contracts. 

According to the Docket Report on December 28 from the lawsuit filed in the US District Courts for the Central District of California, there are serious charges against Infosys. 

The lawsuit’s nature is “Racketeer/Corrupt Organization.” The cause of action is 18:1962 that defines the Prohibited activities described in US law for RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS. Saudi firm said Infosys had violated the Racketeer Influenced and Corrupt Organizations Act (RICO), which relates to organized crime controls in the US.

Infosys Partnership with SPC started On September 2, 2016, under Vishal Sikka’s leadership, when Infosys Ltd announced entering into a joint venture agreement with Saudi Prerogative Company (SPC) provides IT services in Saudi Arabia.

SPC is involved in the various business segments, including Information Technology, Communication, Defence&Homeland Security, Construction&Civil works, and Transportation; their partners or affiliates represent the world’s finest organizations.

Infosys is India’s 2nd largest Information Technology company by the Market cap. It is not the first lawsuit against Infosys, but this is the first time filed as racketeer/Corrupt Organization category. Earlier this year, a former Infosys employee filed a discrimination lawsuit against Infosys in the US.

Indian IT Bog has not been reached out to Infosys yet; however, based on a leading media report, Infosys said it would defend itself vigorously against any allegations.

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