he company also came heavily on Phaneesh’s claim that he was an unwilling party to the settlement. Abiding by its decision to fight the case by its own, the company issued the following pointers, as pre-condition for Phaneesh Murthy to be a part of the settlement.
* He must agree to Infosys having the right to sue him for all his actions and lack of contribution. * He would have no recourse to the insurance company, in case Infy sued him for his actions, including for breach of his fiduciary duties and indemnification. * The company is bound by any term of confidentiality with respect to this settlement or the case.
Initially, Phaneesh refused to participate in the settlement on these terms. When Infosys confirmed to him that the company was anyway going ahead with the settlement alone, Phaneesh came back voluntarily and signed the settlement and agreed to every condition that Infosys had set. As the company retained its right to sue Phaneesh for his actions and lack of contributions, it went ahead with the settlement without any contribution from Phaneesh.
"If Phaneesh believed he was innocent and wanted to clear his name, he should have stayed in the lawsuit by himself and defended his position. We had given him this option. Instead of fighting to clear his name, he elected to settle," refuted the company counsel.
