Bangalore: Software major Infosys on October 10 admitted that its efforts for a settlement with a former woman employee over a sexual harassment case had failed and said an unfavourable resolution of the lawsuit could adversely impact the company's results of operations or financial condition.

"We entered into mediation efforts. Our mediation efforts have not been successful. The matter may go to trial," company chief finance officer and Board member T V Mohandas Pai told a news conference at Bangalore, where Infosys announced a robust quarterly financial results beating market expectations.

Reka Maxmovitch, a Belgian working as executive assistant to Phaneesh Murthy who was head, sales and marketing of Infosys, has filed a suit in a US court against him and the company for alleged sexual harassment after she was removed from her job. Phaneesh Murthy also had to quit to fight the lawsuit.

The company, he said, could not predict whether the performance would affect this or next fiscal. "We are dealing with uncertainties. Nobody can predict what the court is going to decide."

Infosys initiated voluntary settlement discussions with the plaintiff and it appeared the settlement might not be possible in the "near term" and the lawsuit might go to trial, the company said. No trial date has been set yet.

"Infosys will vigorously defend this matter. However the results of such lawsuits are difficult to predict," the company said in its release.

In the light of the incident, the company has taken several steps, including conducting training programmes for employees, apart from the "processes" it already has, Pai said, in reply to a query.

PTI