US Law Suits May Not Have Any Serious Impact On Infosys

Details

Publish Date:
August 22, 2017
Author(s):
  • Christopher, Nilesh
Source:
Economic Times
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Summary

Investigations into a would be class-security fraud at InfosysBSE 2.01 % by multiple law firms are not likely to have any serious impact on the beleaguered IT company, as industry watchers say this is a classic case of ‘ambulance chasing’.

Under US Tort law, a lawyer can work on ‘contingency’ in which they get a cut of any award or settlement and do not get paid otherwise. The term ‘ambulance chasers’ comes from lawyers who used to follow accident victims asking them to sue a wide-range of individuals who could have caused the accident in the hopes of receiving a settlement.

In a recent report published by Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse, Rosen Law Firm was ranked second in the US for the number of Securities Class Action Settlements in 2016.

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