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iYogi Attempts to Settle $6.7 Million IT Services Lawsuit

iYogi is attempting to settle yet another lawsuit, but the embattled IT services provider doesn’t have enough money on hand to do so, according to a May 12, 2016, court filing viewed by ChannelE2E.

iYogi, based in India, is a remote IT service specialist that faces multiple lawsuits — ranging from breach of contract to deceptive sales tactics. Infinite Computer Solutions, for one, alleges that iYogi owes Infinite $6.7 million in unpaid bills and related penalties.

In a May 12 joint letter to the judge overseeing the case, attorneys for both sides stated;

“Plaintiff alleges that iYogi has failed to make payments due on multiple invoices in the accrued sum of $6,298,739 as of November 1, 2015; Plaintiff further alleges that, since that date, an additional $425,000 has become due under the agreement. As pled in the Complaint, Infinite is a Delaware Corporation with a principal place of business in Maryland. iYogi is a New York Corporation whose principal place of business is neither in Maryland nor in Delaware.”

In the same letter, iYogi says Infinite is not entitled to such a sum. However, both sides seem to be exploring a settlement — though iYogi will need to find money to fund such a move:

“Counsel have conferred, and as of this date, the prospects for settlement of this matter are not clear. Defendant has indicated that it will make a settlement offer, but that it is not currently in a financial position to do so.”

The situation apparently is similar in OneCall’s $375,000 lawsuit against iYogi. In an April 4 letter about that case, OneCall says there have been settlement discussions with iYogi. But ChannelE2E has not seen an update in the case since that time.

iYogi’s Legal Headaches

Meanwhile, additional lawsuits against iYogi apparently are still pending. They include:

  • Washington State and Argo Marketing each filed suit against the company for various alleged violations.
  • 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.
  • Concentrix Corp., a division of Synnex, continues to pursue legal action against iYogi for alleged breach of contract.
  • 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.

Some iYogi Customers Feel Burned

Meanwhile, iYogi apparently has cut service levels to customers — many of whom pay the company for remote desktop support.

ChannelE2E has received dozens of reader comments and emails from alleged iYogi customers, many of whom claim the IT services provider is non-responsive to their support and contract inquiries. ChannelE2E has reached out multiple times to iYogi for comment, but has received no reply.

It’s unclear how or if iYogi will find the funds needed to settle one or more lawsuits. Some employees allege that the company failed to meet payroll at times, suggesting that the company’s cash crunch has been serious in recent months.

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10 Comments

Comments

    Jonathan:

    It took six months to do it — and I can’t say it was worth it — but I finally got my $379 refund. The way the need for a refund came about was even probably a scam (they said they couldn’t find my account, but if I bought another, they could fix my computer and I could work it out with billing; I’ve since seen online that others say they were told the same thing.) I was promised at least a dozen times I would have that refund in the next 8 to 10 business days. At least a half dozen times I was left on hold for more than an hour (at which time their billing support line hangs up on you) and heard every half-baked, nonsensical excuse short of “my dog ate your refund.” Here’s how I finally got their attention: I filed a complaint with the Better Business Bureau of New York City and things started happening as a result. Still, I filed a complaint with my state’s attorney general, which I understand is pending whatever happens in Washington state. I also found they have not been registered to do business in my state since 2013, because they withdrew their registered agent, so the Secretary of State’s Office is investigating that. It’s been about a month since I checked, but iYogi had not responded to that complaint, which means they’ll face penalties and being barred from doing business in Colorado. Keep good records, folks, a class-action lawsuit will be on the way, soon, assuming the company doesn’t fold in the interim. I won’t be at all surprised if this doesn’t eventually yield some criminal charges.

      Lona Metzner:

      I have been an iyogi customer since February 2013. In May, 2015, an iyogi rep called me and wanted to upgrade my computer to Windows 10 – he told me my computer wouldn’t work unless I installed word 2016. I never received word 2016 in mail, as I was supposed to. I tried since September 2015 to get my 198.99 refunded. After I communicated with live help technician on chat box, and degraded and angered him so badly that he clicked off the chat box, I finally got my refund on May 23, 2016. But my technical support contract goes through 2020, and live help technician will not provide any service unless I purchase products I know I do not need. So my contract is the same as null and void. I want a refund for the rest of my contract – from 2016 – 2020. I want to file a complaint with Delaware State Attorney General’s Office, I am filing with Washington State Attorney General’s Office, but I may not be eligible for service in that state, since I am not a resident of the state of Washington.

    Doris Hammer:

    We keep getting calls from Iyogi wanting to give us a refund. They want control of our computer to remove all their stuff. Gave control for 2 hours then cut them off. However no refund as they claim they cannot give us a refund on our credit cards as they were not the cards we used to pay them originally. (Yes they were) They want our bank account. No way. They are so persistant with their calls. 11 in two days! My husband almost gave them more information yesterday. I just unhooked the internet. I want nothing to do with these people. I don’t trust them!

      William Keller:

      Ditto to that. I keep telling them to send me a check and then hang up. They are a pain. Karma please hurry and rid us of this vermin!

    Vera Ziegler:

    I just got a call today saying they want to remove their programs from my computer and give me a refund for not providing the service they promised. I told them I have already removed their programs which is true and that they have my address to send a refund. The call came in as restricted. hmmmm. They hung up on me when I told them I was not letting them into my computer ever again.

    C. Gower:

    Received 4 calls in the past week from various iYogi locations, saying it’s time to upgrade my iYogi. I told them iYogi has been removed from my computer. I demanded the 4th caller (from Illinois) to remove my name/phone #, and delete my records. If I have any time left on my contract, I don’t care. I want it STOPPED NOW. We’ll see.

    JOLYN HILL:

    Be aware of iyogi refund scam where they over deposit refund amount into your checking account and then say they have all of your money unless you send them the overage back by a Western union money gram or itunes gift cards. They really don’t have access to your bank account. I want to be included in any lawsuit against this company.

    DC Hig:

    IYogi is a sham — NOW this new company Tech Club, who claims to be an American company this time, answers to their phone number. I’ve heard their voices and their ‘elevator speech” before. Every time the voice (Indian too) on the other side of the phone says “trust me” I want to vomit! Then they say that they will give me a $100 credit for me to start a new service contract with them. Sounds too close to what I’ve heard before. I’m taking my chances on the outside. I hope that there’s another Mass Law suit because there are still many people that have not collected.

    Jeff J:

    I feel the pain of the above commentors. Iyogi is deceptive at best.

    Joe Panettieri:

    Hi Folks: To summarize the comments above and ChannelE2E’s reporting…
    1. Several lawsuits against iYogi had reached default judgments as of December 31, 2016. That means iYogi has been ordered to pay plaintiffs in multiple cases.
    2. Scores of ChannelE2E readers have communicated alleged concerns about iYogi’s business practices.
    3. iYogi has been non-responsive to ChannelE2E’s requests for comment.
    4. Comments on this blog entry are now closed. If you have additional questions/comments/updates about iYogi please email me.

    Joe Panettieri
    Content Czar, ChannelE2E
    Joe@AfterNines.com