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Nasdaq-listed IT services company iGate has said that a shareholder who had filed a class action lawsuit against the company and its former CEO Phaneesh Murthy has withdrawn it, without prejudice.
In statement issued on Friday, iGate said no payment or consideration of any kind was made by the company or any of the defendants in connection with the dismissal of the case.
In the lawsuit filed in the District Court for the Northern District of California, the plaintiff had alleged that the company had violated Federal Securities Laws by not disclosing its CEO Phaneesh Murthy’s improper relationship with a subordinate employee.
The complaint had also alleged that the company had made false and misleading statements between March 14, 2012 and May 21, 2013 over the issue.
“We are pleased to put this matter behind us. With this resolution, we can move forward and continue to focus on delivering the top-quality services and solutions iGate customers have come to expect,” said Gerhard Watzinger, president and CEO of iGate.
On May 20, 2013, iGate had terminated the employment Murthy for not informing the company about his ‘relationship’ with a subordinate employee in violation of the code of conduct.
