IT major Infosys which was charged of harassment by a former employee in the United States has won the case as a court in Alabama dismissed charges against the company. The company’s shares rose more than 3 % on Tuesday morning, when the markets opened a day after the court ruled in its favour.
In a two page ruling on Monday, US District Judge Myron H Thompson said that there was no basis to support any of the charges filed by Infosys employee Jack Palmer. Palmer had alleged that the company harassed and side-lined him after he reported widespread misuse of the US visa at Infosys.
The favourable judgement comes as a relief to the company which has recently seen turbulent times with accusations of visa abuse being hurled at it and an on-going federal investigation into visa misuse “targeting” the company. However, this is not the end of all its troubles. Infosys still faces one more harassment lawsuit by another former employee on similar grounds.
Infosys said in a statement, “Today’s decision confirms what we have been saying from the beginning. Mr Palmer’s claims of retaliation were completely unfounded…We are pleased to consider this matter officially closed.”
While the Jack Palmer harassment suit has been dismissed, the company is still facing federal investigation into alleged visa misuse. Infosys is facing an expanding federal investigation prompted by Jack Palmer’s lawsuit filed in February. A federal grand jury in Texas had subpoenaed the company about the company’s alleged misuse of US visas in May.
Meanwhile, outsourcing and the use of cheaper labour from other countries to work in the Untied States has become a campaign issue in the United States which is going through an election year.