Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether iGATE Corporation (“iGATE” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit was filed in the U.S. District Court for the Northern District of California by another law firm on behalf of purchasers of the common stock of iGATE Corporation (NASDAQ: IGTE) between March 14, 2012 and May 21, 2013, inclusive (the “Class Period”).
The complaint alleges that iGATE and one of its officers (“Defendants”) misrepresented and/or failed to disclose that: (1) the Company’s future prospects were particularly dependent upon the skills and connections of its Chief Executive Officer and President, Phaneesh Murthy, who had a history of sexual harassment while at a prior company; (2) Murthy became involved in an improper relationship with a subordinate employee in violation of iGATE's explicit policies to the contrary; and (3) Murthy's improper conduct created a risk that he would be terminated from the Company, jeopardizing the Company's future success. As such, the complaint alleges that Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies during the Class Period.
On May 20, 2013, the Company disclosed that its Board of Directors terminated Murthy, effective immediately, after an internal investigation revealed that Murthy had a relationship “with a subordinate employee” and there was “a claim of sexual harassment” in violation of iGATE’s company policies and Murthy’s employment contract.
On May 21, 2013, the price of iGATE’s securities dropped $1.58 a share to close at $14.82.
Cohen Milstein encourages all investors who purchased iGATE common stock between March 14, 2012 and May 21, 2013 or former employees with information concerning this matter to contact the firm.