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The US-based outsourcing firm iGate is being investigated by a law firm to ascertain whether the company and its employees violated federal securities laws.
Bronstein, Gewirtz & Grossman, LLC, which has offices in New York and New Jersey, has said it is investigating claims on behalf of purchasers of iGate securities.
“Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of the securities of iGATE Corporation. The investigation focuses on whether the Company and its executives violated federal securities laws,” it said in a release.
On May 21, 2013, shares of of iGATE fell $1.58 or 9.63 per cent to close at $14.82 after the company announced the immediate departure of its CEO, Phaneesh Murthy, for allegedly failing to report a relationship with a subordinate employee, the law firm added.
iGate did not respond to queries from PTI on the issue.
The firm further added: “In a note to investors, Wells Fargo (bank) said Murthy’s departure leaves a void at the company, adding that Murthy was heavily involved in sales and his departure may affect the company’s near-term growth.”
The firm said it has asked people, who are aware of any facts relating to this investigation, or purchased shares of iGATE, to assist them in the investigation.
Shares of Nasdaq-listed iGate fell by 4.32 per cent to close at $14.18 on May 22.
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