Class action lawsuit filed against iGate over Phaneesh Murthy

The US law firm, Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed the class action lawsuit against iGate Corporation over its former CEO Phaneesh Murthy’s “improper relationship” with an assistant.

The New York-Based firm law firm has lodged the case on behalf of group of people or individual who bought iGate securities since March 14, 2012.

The law firm alleged that iGate that throughout the class period had issued several false and misleading statements regarding its business, operations and other policies.

“The class action, filed in United States District Court, Northern District of California, and docketed under CV 13 2737 PSG LHK, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of iGate between March 14, 2012 and May 21, 2013 both dates inclusive,” the law firm said in a statement. It further added that the action seeks to “recover damages against the company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated there under,” the company said in a statement.

“Specifically, defendants made false and/or misleading statements and/or failed to disclose that “(i) the company’s Chief Executive Officer and President ‘Murthy’ was involved in an improper relationship with a subordinate employee in violation of iGate’s explicit policies to the contrary. “(ii) Murthy’s improper conduct created a risk that he would be terminated from the company, jeopardising the company’s future success,” the lawsuit stated.

TOI quoted  iGate spokesperson who said, “We believe that this claim has no merit, and we intend to vigorously defend this action. No other similar claims have been filed.”

iGate had sacked its CEO & MD Phaneesh Murthy on May 20 for allegedly having ‘improper relationship’ with a subordinate employee.

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