Mumbai:  Shares of Infosys on Tuesday surged nearly 4 percent after a US court in Alabama dismissed harassment charges filed against the IT major by one of its American employee.

After making a bullish opening, shares of the company further gained 3.71 percent to Rs 2,438.75 on the BSE.  At the National Stock Exchange, the scrip rose by 3.74 percent to Rs 2,439.

The stock was the top gainer on the Sensex, which was trading 80 points higher at 17,771.08 at 1128 hrs.

"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," US District Judge Myron H Thompson said in his two-page ruling on Monday.

"It is further ordered that costs are taxed against plaintiff Palmer, for which execution may issue," Judge Thompson said in his order dated August 20, thus bringing an end to a long drawn case against the major Indian IT company.

"Tuesday’s decision confirms what we have been saying from the beginning: Mr Palmer's claims of retaliation were completely unfounded," Infosys said in a statement.

"We are pleased to consider this matter officially closed," it added.

'Infosys victory may deter copycat lawsuits'

The Infosys victory in 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, an eminent Indian American lawyer has said.

"Infosys's victory in federal court may very well have a chilling effect on potential copycat lawsuits against Indian companies," a Birmingham-Alabama-based attorney with Haskell Slaughter Young & Rediker, Jagdesh Kirpalani, said.

Referring to the order Kirpalani said, "The plaintiff brought state law claims against Infosys over which the federal court exercised diversity jurisdiction.

"Although the matter was pending in federal court, because the case involved state law claims, the court was required to apply Alabama law to the plaintiff's causes of action."

Hopefully, one of the points Indian companies will take away from this result is that the system of justice in the US is both fair and efficient, said Kirpalani, whose practice is focused on advising entrepreneurs and established businesses on international business transactions and economic development.


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