A class action suit filed against iGate and Phaneesh Murthy in the US has been dismissed and neither the company nor its disgraced former CEO has made any payment in this connection, the IT services firm said on Friday.
The California-based firm was slapped with a class action lawsuit for alleged violations of federal securities laws. The suit alleged that the company failed to disclose that Murthy was involved in an ‘improper relationship with a subordinate employee’ in violation of iGates' stated policies.
It also said ‘Murthy's improper conduct created a risk that he would be terminated from the company jeopardising the company's future success’.
iGate had sacked Murthy on 20 May for allegedly failing to report a relationship with a subordinate employee.
‘On 22 August, 2013, the class action lawsuit filed against iGate and its former CEO, Phaneesh Murthy by a shareholder of iGate on June 14, 2013 in the
US District Court for the Northern District of California, was voluntarily dismissed by the shareholder plaintiff, without prejudice,’ iGate said in a statement.
The California-based firm was slapped with a class action lawsuit for alleged violations of federal securities laws. The suit alleged that the company failed to disclose that Murthy was involved in an ‘improper relationship with a subordinate employee’ in violation of iGates' stated policies.
It also said ‘Murthy's improper conduct created a risk that he would be terminated from the company jeopardising the company's future success’.
iGate had sacked Murthy on 20 May for allegedly failing to report a relationship with a subordinate employee.
‘On 22 August, 2013, the class action lawsuit filed against iGate and its former CEO, Phaneesh Murthy by a shareholder of iGate on June 14, 2013 in the
US District Court for the Northern District of California, was voluntarily dismissed by the shareholder plaintiff, without prejudice,’ iGate said in a statement.