Infosys Technologies Limited is considered a paragon of virtue among Indian businesses.

That of course is fiction.

You don’t believe us?

Go look at Infosys’ IPO documents dating back to the early 1990s. What did Infosys tell you they were raising money for in the IPO prospectus? Did the company do as promised in the immediate aftermath of the IPO?

Recently, troubling questions have been raised once again about this media darling.

This time, the issue is Infosys’ recent settlement with the California Division of Labor Standards Enforcement (DLSE) towards possible overtime payment to certain employees in California for a total amount of $26 million.

The payment pertains to the last three years and such back wages are to be paid to employees in due course.

Infosys announced the California Overtime settlement as part of its Q3 2007-2008 results.

The Infosys settlement document provided to us by some folks in California is your usual legal gobbledegook.

To put it in plain English, Infosys is saying it may have inadvertently broken some California or federal laws and is trying to cover its ass in the litigious U.S. business environment.

Were laws broken by Infosys? If laws were broken, was it inadvertent? Why did Infosys act the way it did?

Only a full trial and subpoena of documents can Continue Reading…