IT management

iYogi Lawsuits: Judge Recommends $1M+ Judgment Against IT Service Provider

iYogi, the IT service provider facing multiple lawsuits, appears to be losing ground in a legal battle battle vs. plaintiff Tata Communications.

Indeed, a magistrate judge recommends that a default judgment be entered in favor of plaintiff Tata Communications (America) Inc. and against defendant iYogi Inc. in the amount of $1.153 million for unpaid invoices, plus various late charges and attorney's fees, according to a July 15 court filing viewed by ChannelE2E.

iYogi Inc. must file objections to the proposed findings by July 29, the filing states.

iYogi is a venture-backed remote help desk provider that claims to support over 3 million users in 11 countries. However, numerous organizations and businesses have filed suit against the company over the past year — alleging breach of contract, nonpayment of services and other issues. Two separate cases -- one of which involved Tata -- had been moving toward potential judgments against iYogi.

iYogi IT Services: Hurting Consumers?

Some consumers, meanwhile, allege that iYogi has failed to fulfill IT support contracts. Dozens of readers have posted comments on ChannelE2E, alleging that they either can’t reach the company or have been re-routed to other service providers — some of which have used upsell and cross-sell tactics.

Rumors of a potential class action lawsuit have also surfaced against the company, though ChannelE2E has not seen any legal filings in that area.

iYogi in December 2015 denied any wronging in a lawsuit filed by the State of Washington, but the IT service provider has not commented publicly on the various suits since that time. The company has not replied to ChannelE2E’s multiple requests for comments.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.