NEW YORK, July 12, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against iGATE Corporation ("iGATE" or the "Company") (Nasdaq: IGTE ) and certain of its officers. The class action, filed in United States District Court, Northern District of California, and docketed under CV 13 2737 PSG LHK, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of iGATE between March 14, 2012 and May 21, 2013 both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result 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 thereunder.
If you are a shareholder who purchased iGATE securities during the Class Period, you have until August 13, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com . To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased. There is no out of pocket cost to you for your participation.
iGATE offers a range of information technology ("IT") solutions to large and medium-sized organizations using an offshore/onsite model. The Company's services include client/server design and development, conversion/migration services, offshore outsourcing, enterprise resource planning package implementation and integration services, and software development.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company's Chief Executive Officer and President "Murthy" was involved in an improper relationship with a subordinate employee in violation of iGATE's explicit policies to the contrary; and (ii) Murthy's improper conduct created a risk that he would be terminated from the Company, jeopardizing the Company's future success.
On May 20, 2013, the Company disclosed that its Board of Directors terminated the employment of President and CEO Phaneesh Murthy, effective immediately, after an internal investigation revealed that Murthy had a relationship "with a subordinate employee and a claim of sexual harassment" in violation of iGATE's company policies and Murthy's employment contract. On this news, iGATE securities declined $1.58 per share or nearly 10%, to close at $14.82 per share on May 21, 2013.
On May 22, 2013, the Company further revealed that the termination of the CEO was "'for cause,' and Mr. Murthy is not entitled to severance payment under the terms of his Employment Agreement with the Company." In response to his termination, Defendant Murthy acknowledged that he had a personal relationship with a Company employee, which was against company policy stating, "[i]t was a personal relationship. The company policy states that any two employees having a relationship have to inform the superiors." On this news, iGATE securities declined an additional $0.64 per share or more than 4%, to close at $14.18 per share on May 22, 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com .
Robert S. Willoughby Pomerantz Grossman Hufford Dahlstrom & Gross LLP
