Infosys has steadfastly denied any accusations of visa abuse and fought the case vigorously. “Those claims are untrue and only unproven assertions,” the company said Tuesday in a statement. The company said its use of business visitor visas “was for legitimate business purposes and not in any way intended to circumvent the requirements” of the employment visa, which is known as H-1B.

Infosys, which is based in Bangalore, said the resolution of the case was not yet completed. “Infosys’ policy demands adherence to all laws, rules and regulations everywhere we operate and we continue to take our compliance obligations seriously,” the statement said.

The settlement is one of several setbacks in this country for Infosys, and could also affect other big Indian outsourcing companies that rely on the temporary H-1B employment visas to bring thousands of workers from India each year for technology contracts here. In a class-action lawsuit filed this year in Wisconsin, four American tech workers assert that Infosys broadly discriminates against Americans with its practice of employing mainly South Asians in the United States.

The outcome in Texas is long-awaited relief to an American employee of Infosys, Jack B. Palmer. He spurred the federal investigation by bringing a whistle-blower lawsuit in Alabama in February 2011, saying that he had been punished and sidelined by Infosys executives after he reported witnessing widespread visa fraud. Since then, Mr. Palmer said by email, the case has continued to dominate his life. He has remained on the company’s payroll while cooperating with a federal investigation that has ground slowly forward, but he has not been assigned any work or spoken with anyone at Infosys for many months.

“Despite the personal toll it took on me, it would have been much worse in the long run if I had turned the other cheek,” Mr. Palmer said. “It was a question of right and wrong, following my conscience and following the law.”