Oct. 11 (Bloomberg) -- Infosys Ltd., 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.
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