Press release from Business Wire
Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against iGATE Corporation
Wednesday, June 19, 2013
Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against iGATE Corporation17:47 EDT Wednesday, June 19, 2013
WILMINGTON, Del. (Business Wire) -- Rigrodsky & Long, P.A.:
- Do you, or did you, own shares of iGATE Corporation (NASDAQ GS: IGTE )?
- Did you purchase your shares before March 14, 2012, or between March 14, 2012 and May 21, 2013?
- Did you lose money in your investment in iGATE Corporation?
- Do you want to discuss your rights?
Rigrodsky & Long, P.A., including former Special Assistant United States Attorney, Timothy J. MacFall, announces that a complaint has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities that purchased the common stock of iGATE Corporation (“iGATE” or the “Company”) (NASDAQ GS: IGTE) between March 14, 2012 and May 21, 2013, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of iGATE during the Class Period, or purchased shares prior to the Class Period and still hold iGATE, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to email@example.com, or at: http://www.rigrodskylong.com/investigations/igate-corporation-igte.
iGATE is a worldwide outsourcing provider of integrated end-to-end offshore centric information technology (“IT”) and IT-enabled operations solutions and services. According to the Company, its future prospects and success were particularly dependent upon the services of its Chief Executive Officer and President, Phaneesh Murthy (“Murthy”), the creator of the iGATE's revolutionary outcome-based pricing model. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, by concealing from the investing public that: (i) Murthy was involved in an improper relationship with a subordinate employee in violation of iGATE's explicit policies; and (ii) Murthy's improper conduct created a risk that he would be terminated from the Company, jeopardizing the Company's future success. As a result of defendants' false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on May 20, 2013, the Company disclosed that its Board of Directors terminated the employment of Murthy, effective immediately, after an internal investigation revealed that Murthy had a relationship “with a subordinate employee” who had made “a claim of sexual harassment” against him, in violation of iGATE's express policies and Murthy's employment contract. On this news, shares in iGATE declined nearly 10% to close at $14.82 per share on May 21, 2013. Then, on May 22, 2013, the Company further revealed that the termination of Murthy was “‘for cause,' and Mr. Murthy is not entitled to severance payment under the terms of his Employment Agreement with the Company.” On this news, shares in iGATE once again declined more than 4% to close at $14.18 per share.
The Complaint further alleged that the iGATE employee who filed the sexual harassment claim against Murthy is the Company's former head of investor relations and, according to media reports, Murthy's inappropriate relationship with her was well known throughout the Company during the Class Period. According to the media reports cited in the Complaint, that former head of investor relations is pregnant with Murthy's child.
If you wish to serve as lead plaintiff, you must move the Court no later than August 13, 2013. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.
Attorney advertising. Prior results do not guarantee a similar outcome.
Rigrodsky & Long, P.A.
Timothy J. MacFall, Esquire