Continuing its downward trend for the third straight day, shares of iGATE Corp today declined by over one per cent to USD 14.01 in early trade, after fresh allegations against its sacked chief executive Phaneesh Murthy hit headlines.
In the first half an hour of trade, shares of iGate fell by 1.20 per cent to USD 14.01 apiece on the Nasdaq. In the last three trading sessions, shares of Nasdaq listed iGate plunged over 14 per cent.
IGATE had earlier this week terminated Murthy's contract for not reporting a relationship with the company's head of investor relations Araceli Roiz.
California-based law firm, Aiman-Smith & Marcy, has said that Roiz was pregnant with Murthy's child and it planned to sue both Murthy and iGate for alleged sexual harassment.
"On behalf of Roiz, we are contemplating next steps, which will certainly include court action against Murthy and iGate," it said, adding that iGATE was liable for the conduct of its CEO.
Murthy has been replaced by interim CEO Gerhard Watzinger at iGATE. Murthy has denied charges of sexual harassment but said he was in relationship with a colleague in iGATE for "few months."
In what could be fresh trouble for iGate, another law firm -- Bronstein, Gewirtz & Grossman, LLC -- said it has been asked by the company's investors to probe if the firm violated federal securities laws.
Murthy, one of the industry's best-known executives, was forced to quit India's second-biggest software services exporter Infosys in 2002, following a sexual harassment lawsuit, which was settled out of court.
