Infosys' victory may have deterrent effect on similar lawsuits news
21 August 2012

Infosys' victory in a federal court in Alabama may deter potential copycat lawsuits against Indian companies and the mere possibility of litigation should not scare away businesses from investing in the US, according to an eminent Indian American lawyer.

Birmingham-Alabama-based attorney with Haskell Slaughter Young & Rediker, Jagdesh Kirpalani, told PTI after Infosys won the case, that the verdict may have a chilling effect on potential copycat lawsuits against Indian companies, after hte federal court dismissed harassment charges against the IT major by one of its American employees, Jack 'Jay' Palmer.

He said in simple terms, the plaintiff's case was an employment case alleging claims founded in contract and tort in which the plaintiff failed to establish that Infosys breached a contract with him.

The plaintiff failed to present any conduct on the part of Infosys that rose to the level of an intentional infliction of emotional distress he said and the court therefore threw out the plaintiff's claims as insufficient.

US district judge Myron H Thompson said, "Judgement is entered in favour of defendants Infosys Technologies Limited Incorporated and Infosys Limited and against plaintiff Jack 'Jay' Palmer, Jr., with plaintiff Palmer taking nothing by his complaint. "It is further ordered that costs are taxed against plaintiff Palmer, for which execution may issue."

The judge concluded that Palmer had no right to recover from Infosys under the current Alabama law.

According to Kirpalani, hopefully, one of the points Indian companies would take away from this result was that the system of justice in the US was both fair and efficient.

Meanwhile, Infosys Ltd surged over 3 per cent in trade today following the dismissal of all charges filed by Palmer.

According to a JP Morgan note, the event was a mild sentiment positive for Infosys and the industry. However, the company continued to face the Department of Justice investigation on visa misuse.

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Infosys' victory may have deterrent effect on similar lawsuits