NEWS: Infosys Agrees to Settle Work Visa Allegations for Record $34 Million

In what is the largest payment of its kind relating to alleged work visa fraud, India-based IT consulting giant Infosys (NYSE: INFY) has agreed to pay $34 million to settle a civil lawsuit brought by multiple U.S. and state regulatory bodies, Infosys announced today.

The allegations first surfaced in 2010, two years after the first alleged violations occurred, according to federal regulatory officials. Federal authorities claim that Infosys committed "systematic visa abuse and fraud" by bringing Indian workers to the U.S. using less expensive, and less time-consuming, business visas rather than employment visas. Additionally, Infosys' visa paperwork contained numerous errors and omissions, federal authorities alleged, which could have resulted in workers staying well beyond the time their visas would have normally allowed.

Infosys, in today's statement, vehemently refutes the allegations, saying it "denies and disputes any claims of systemic visa fraud, misuse of visas for competitive advantage, or immigration abuse. Those claims are untrue and are assertions that remain unproven."

According to Infosys, the $34 million settlement will come from a reserve of $35 million it had already set aside relating to the civil suit.


 
 

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2706358, ~/Articles/ArticleHandler.aspx, 10/23/2014 9:56:08 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement