Infosys nicely 'suited'
Shares of Infosys were trading firm today, rising about 2% to around Rs. 1,674 on the BSE after touching an intraday high of Rs. 1,692, marking an over nine-month high for the stock. The gains came on steady volumes, even as the broader market remained largely range-bound, reflecting stock-specific sentiment rather than a sector-wide move.
The stock reacted positively after Infosys disclosed that its US subsidiary, Infosys McCamish Systems LLC, has received final approval from a US court for a settlement agreement in a class-action lawsuit related to an alleged data breach. The court granted final approval on December 18, 2025, and if the settlement is not appealed within 30 days, it will become effective, fully resolving all allegations without any admission of liability. Under the settlement terms, Infosys McCamish will pay $17.5 million into a settlement fund.
The lawsuit stems from a data breach incident disclosed earlier, where Bank of America had stated in February 2024 that Infosys McCamish Systems was the source of a breach affecting 57,028 customers. The breach reportedly occurred on October 29, 2023, and was discovered on October 30, 2024. While the issue had weighed on sentiment around the subsidiary, the settlement amount is not seen as financially material for Infosys, given its balance sheet strength and scale of operations.
The settlement fund is a court-supervised escrow pool created specifically to resolve all claims arising from the data breach, from which eligible affected customers can seek compensation subject to defined caps and timelines. By ring-fencing the total payout at $17.5 million, the agreement places a clear ceiling on Infosys McCamish’s financial exposure, shielding the company from open-ended damages, follow-on lawsuits, or future class claims linked to the same incident. The key positive for the market is that the settlement fund effectively closes the legal chapter, removes uncertainty, and avoids prolonged litigation and incremental legal costs tied to this matter.
From a market perspective, the final court approval removes a lingering legal overhang and improves visibility, which investors typically factor in positively. At current levels, Infosys is valued at a market capitalisation of about Rs. 6.96 lakh crore. Going ahead, investor focus is expected to shift back to core fundamentals such as deal wins, margin trajectory and demand trends in key overseas markets, with the legal closure providing incremental comfort on risk management and governance.