 "L'affaire Phaneesh Murthy: Now, a class action suit against iGate")
L’affaire Phaneesh Murthy is haunting Nasdaq-listed iGate Corp.
According to a report in the Hindu Business Line, shareholders of the company have filed a class action suit against the company alleging they were not informed about former Chief Executive Officer Murthy’s relationship with its employee.
The suit has been filed in United States District Court, Northern District of California. As per the statement issued by the law firm, the case has been filed by all those who purchased iGATE shares between March 14, 2012 and May 21, 2013.
[caption id=“attachment_883431” align=“alignleft” width=“380”] Reuters[/caption]
The report quotes from a statement issued by the law firm as saying that iGate and its officials “made ‘materially false and misleading statements’ regarding its ‘business, operational and compliance policies’ between March 14, 2012 and May 21, 2013, when Murthy was at the helm of affairs”.
“Murthy’s improper conduct created a risk that he would be terminated from the company, jeopardising the company’s future success,” the report quoted from the statement issued by law firm Pomerantz Grossman Hufford Dahlstrom & Gross.
iGate board had sacked Murthy on May 20 after his relationship with Araceli Roiz, the company’s head of investor relations, came to light.
“The board’s decision was made as a result of an investigation by outside legal counsel, engaged by the board, of the facts and circumstances surrounding a relationship Mr Murthy had with a subordinate employee and a claim of sexual harassment,” the company statement had said.
Impact Shorts
More ShortsRoiz’s legal firm Aiman-Smith & Marcy had alleged that Murthy told the iGate board of his relationship with Roiz only after she informed him that she will be taking legal action against him.
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