Infosys Makes $35 Million Provision to Settle Visa Case in U.S.

Infosys Ltd. (INFO), India’s second-largest software exporter, reserved $35 million for a potential settlement tied to a U.S. probe into the company’s use of visas.

The company is “engaged in discussions” to reach a civil resolution with the U.S. Attorney’s office which is investigating compliance with visa laws, Bangalore-based Infosys said in an e-mailed statement. The company declined to elaborate on the talks, which it said are continuing.

Infosys, which reported earnings today, resolved two whistle-blower cases in Alabama and California in the past 14 months after employees alleged it misused so-called B-1 visas, temporary business permits, to avoid limits on H-1B employment visas. Proposed changes to immigration laws in Congress, which would limit the ability of large Indian companies to access H-1B visas, may damage Infosys’ business model of relying on North America for more than 60 percent of its revenue.

Infosys reported second-quarter net income of 24.1 billion rupees ($394 million) in the three months ended September. That missed the 26.6 billion-rupee median of 46 analysts’ estimates compiled by Bloomberg, due to the company’s 2.2 billion rupee provision for “visa-related matters.” according to the company’s statement.

To contact the reporter on this story: Kartikay Mehrotra in New Delhi at

To contact the editor responsible for this story: Michael Tighe at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.