Murthy affair: Suit filed in U.S. against iGate

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New Delhi: Out-sourcing firm iGate has been slapped with class action lawsuit in the US for alleged violations of federal securities laws in view of its sacked chief executive officer Phaneesh Murthy's “improper relationship” with a subordinate employee.
The suit has been filed on behalf of persons or entities who purchased or acquired securities of iGate between March 14, 2012 and May 21, 2013.
The New York-Based law firm, Pomerantz Grossman Hufford Dahlstrom & Gross LLP, filed the class action lawsuit against US-based iGate Corporation and some of its officers in the US District Court of Northern District of California on June 14.
Acc-ording to the law firm, the complaint has alleged that throughout the class period, defendants (iGate) had made materially false and misleading statements reg-arding its business, operational and compliance policies. iGate had sacked Murthy on May 20 for allegedly failing to report a relationship with a subordinate employee.
The suit has been filed to recover damages against the firm and some of its officers and directors on account 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.