Class action lawsuit filed against iGate

Written by fe Bureau | Bangalore | Updated: Jun 22 2013, 18:27pm hrs
iGate, the US-headquartered IT outsourcing company, faces a class action lawsuit for alleged violations of federal securities laws. The US-based law firm Rigrodsky & Long, PA announced that a securities fraud class action suit has been filed against the IT-services firm.

According to a press release, the law firm announced that a complaint has been filed in the US District Court for the Northern District of California on behalf of all persons or entities that purchased the common stock of iGate Corporation between March 14, 2012 and May 21, 2013, alleging violations of the Securities Exchange Act of 1934 against the Company and some of its officers.

iGate had sacked its CEO Phaneesh Murthy on May 20, 2013 for alleged improper conduct with a female employee on May 20 and his departure saw the company's stock declining by over 10%.

The latest lawsuit follows that of New York-Based law firm, Pomerantz Grossman Hufford Dahlstrom & Gross, which on June 14 filed a class action lawsuit against iGate and some of its officers in the US District Court of Northern District of California. The law firm alleged that iGate had made materially false and misleading statements regarding its business, operational and compliance policies.