Reka Maximovitch filed a case against Phaneesh Murthy on 17 Dec 2001, alleging sexual harassment and unlawful termination

of employment. Phaneesh was a member of board of directors and he was also handling the Infosys business in USA. He was highest paid employee of Infosys. She further alleged that Infosys was failed to take reasonable steps against Phaneesh Murthy.

Scandal initiated during 1999 to December 2000 In June 2002 Murthy resigned Infosys to defend the suit successfully. Murthy refused to participate in the settlement initiated by Infosys but later agreed to all the terms.

Value and judgment plays important role when we make ethical decision While Sexual Harassment of Female employees was prevalent in the country, it was either not reported or ignored. Analysts claimed that the company had kept the issue under wraps for a long time.

N.R. Narayana Murthy said that the company senior management would also be drained if the legal case continued, which could have been utilized for Infosys. His intention showed that he did not want to proceed the legal process and awareness about the suit

The case was settled out-of-court by agreeing to pay US$ 3 m to Reka Maximovitch.
It is clear that Reka was blackmailing both Infosys and Phaneesh.

Out-of-court settlement clearly was not the best solution. Instead of addressing the problem.
The larger issue of the emotional, physical and financial damages caused to the victim could be dealt with only if strict policies and guideline regarding sexual harassment were established by the companies.