What happened
Shares of Infosys (INFY 2.92%) slumped on Monday after the digital services and consulting company received a complaint from a whistle-blower regarding its accounting practices. The stock was down 12.1% at 12:55 p.m. EDT.
So what
A letter sent to Infosys's board of directors accused CEO Salil Parekh of using "unethical practices" to prop up revenues in the short term. The letter requested an investigation from the board, and it offered to provide email copies and voice recordings related to the complaint.
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In an emailed statement, Infosys confirmed the receipt of the letter: "The whistleblower complaint has been placed before the Audit Committee as per the company's practice and will be dealt with in accordance with the company's whistleblowers policy."
Now what
Infosys is no stranger to turmoil. Former CEO Vishal Sikka abruptly resigned in August of 2017 following a feud with the company's founders. Founder and former chairman Narayana Murthy had accused Infosys of lapses in corporate government, according to Reuters.
If the whistle-blower complaint stands up to scrutiny, the company could be in for another tumultuous period.
