IT management

iYogi Lawsuits: Don’t Expect Immediate Answers

Multiple lawsuits against iYogi, the cloud-based IT help desk provider, continue to wind their way through the U.S. court systems in Florida, New York, Virginia and Washington. As some partners and customers seek alternative platforms amid alleged iYogi support challenges, it's unlikely that the legal cloud surrounding the company will clear up anytime soon.

Some of the controversy emerged in December 2015 when Washington State filed suit against iYogi, alleging the help desk provider routinely scams customers into buying software and services they don’t need. As part of the lawsuit announcement, Microsoft’s Chief Legal Officer Brad Smith said iYogi is one of the companies that Microsoft receives the most complaints about.

iYogi Lawsuits Mount

In the weeks that followed, several additional lawsuits against iYogi emerged. They include:

  • Argo Marketing of Lewiston, Maine, is suing iYogi in New York. The lawsuit attempts to collect money owed to Argo by the tech support firm, according The Argo-iYogi relationship had been expected to create 300 jobs in Maine — launching iYogi’s first Global Technology Services Center in North America, but the deal allegedly fell apart.
  • OneCall alleged breach of contract and is seeking $375,583 from iYogi. The suit was filed in the United States District Court for the Southern District of New York.
  • Bankers Warranty Group alleged breach of contract, breach of implied duty of good faith and fair dealing, intentional misrepresentation, quantum meruit, and unjust enrichment. The company is seeking judgment against iYogi for at least $238,791 plus various fees. The suit was filed in the United States District Court for the Middle District of Florida, Tampa Division.
  • Tata Communications  (America) Inc. alleged that iYogi failed to pay numerous telecom invoices. As of January 10, 2016, iYogi owed Tata $1.154 million plus late charges and additional fees, the service provider alleged. Tata is seeking to recover that figure and various fees. The suit was filed in United States District Court for the Eastern District of Virginia.

iYogi's Responses

In some cases, iYogi has publicly proclaimed its innocence, alleging that the company is a victim of its success. In other cases, iYogi has filed legal responses maintaining that the company has done nothing wrong. But the march toward resolutions in each case could be lengthy.

For instance, iYogi last week filed a Notice of Appearance (registering their legal counsel of record) in the Washington State case. The company has 60 days from that submission to file its response to the substance of the state's complaint, according to a spokesman for Washington State's attorney general's office.

Meanwhile, some customers allege iYogi's phone support has been non-responsive and/or less than helpful in recent weeks.

ChannelE2E has reached out to iYogi for comment about each of the lawsuits. We've also pursued a status update on the company's business operations, but we have received no reply.

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.