IT management, MSP

Judge Rules iYogi Must Pay Tata $1.24 Million

iYogi must pay Tata Communications $1.24 million as part of a default judgment against the embattled IT services provider, according to court documents viewed by ChannelE2E.

iYogi, based in India, offers remote IT support services to more than 3 million customers across 11 countries, the company says.

Tata filed suit in March 2016, alleging iYogi failed to pay numerous telecom invoices. The suit wasn't unique. Over the past year or so, iYogi has faced multiple lawsuits. Some alleged nonpayment of bills and breach of contact.

Still, the highest-profile case likely involves the State of Washington -- which alleges that iYogi scams consumers and businesses into buying more IT services than they need. When the suit emerged in December 2015, iYogi said it was without merit.

iYogi Lawsuits, Business Challenges

In recent months, iYogi has allegedly faced additional challenges. By March 2016, some customers alleged that they no longer could reach iYogi's support lines. And some former employees alleged that they had gone without paychecks for extended periods of time.

Multiple lawsuits against iYogi have been navigating the U.S. court system in 2016. In some cases, iYogi failed to reply to court and plaintiff requests in a timely manner.

Among the cases still pending:

  • Bankers Warranty Group seeks about $238,000 from iYogi. That case is scheduled for mandatory initial disclosures on September 23, according to court documents viewed by ChannelE2E.
  • OneCall is seeking a summary judgment of $145,270 with interest from iYogi, according to an August 30 court document viewed by iYogi. ChannelE2E does not know if the judge has reached a decision in that case.

iYogi has not replied to ChannlE2E's requests for comment in recent months.

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.