Infosys served with notice in 2nd sex lawsuit

The software major Infosys Technologies on Friday said it has been served with the notice in second sexual harassment lawsuit filed against the company and its former director Phaneesh Murthy during the quarter ending December 2003.

The lawsuit was filed in the previous quarter by a former American Infosys employee Jeniffer Griffith, alleging sexual harassment by Phaneesh Murthy during his tenure with the company, a charge he has denied as "absurd".

"The lawsuit was filed in the last quarter…the notice was served on us this quarter," Infosys director and chief Financial Officer T V Mohandas Pai told reporters in Bangalore.

"Management is reviewing the allegations. Based on the knowledge of facts, management estimates that the lawsuit will not have material impact on the result of operations or the financial position of the company," Infosys said.

Infosys had reached a $3 million out-of-court settlement with a former employee Reka Maximovitch, who had filed a sexual harassment lawsuit against Phaneesh and the company, which led to the exit of Murthy in July 2002.

Infosys's liability was Rs 7.09 crore (Rs 70.9 million) [$1.5 million] of which Rs 2.48 crore (Rs 24.8 million) was provided in the second quarter. The remainder was made out of the provision of Rs 2.40 crore (Rs 24 million) made in the previous year and through the reimbursement of legal fees by the insurance company.