IT management, MSP

Synnex Division Pursues Lawsuit vs. iYogi

Concentrix Corp., a division of Synnex, continues to pursue legal action against iYogi for alleged breach of contract. But iYogi, a global IT service provider focused mostly on consumers, appears to be side-stepping or trying to delay next steps in the case.

Indeed, attorneys representing Concentrix Daksh have tried multiple times to schedule a plaintiff deposition with iYogi this month. Concentrix in April offered up 14 dates for the deposition. So far iYogi has yet to reply with a date confirmation, according to a letter from Concentrix's attorneys to the United States District Court of New York. ChannelE2E has viewed a copy of the letter.

Concentrix Daksh originally filed suit against iYogi in April 2015. Concentrix alleges iYogi owed the company $4.1 million plus interest for certain computer and technical support services in India.

iYogi Lawsuits At a Glance

The suit sounds similar to a range of legal challenges that iYogi now faces. Chief among them:

  • 2015Washington State and Argo Marketing each filed suit against the company for various alleged violations.
  • Feb. 2, 2016: OneCall alleged breach of contract and is seeking $375,583 from the company. By April, OneCall apparently was exploring settlement discussions with iYogi, but ChannelE2E doesn't know if those discussions took place.
  • Feb. 18, 2016: Bankers Warranty Group alleged breach of contract and other violations, and is seeking judgment against iYogi for at least $238,791 plus various fees.
  • March 14, 2016: Tata Communications  (America) Inc. alleged that iYogi failed to pay about $1.154 million in invoices and late fees. Tata is seeking to recover those fees.

Rumors about potential class action lawsuits have also surfaced. Many iYogi customers claim they paid up-front for long-term IT services, and in some cases iYogi has failed to deliver those services, the customers claim. Scattered reports suggest that iYogi has also failed to pay its own employee salaries in some cases.

ChannelE2E has reached out to iYogi multiple times seeking comment about each lawsuit but 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.