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iYogi Faces Potential Default Judgment In $1.2M Lawsuit

iYogi, the embattled IT service provider facing multiple lawsuits, appears to be running out of time in a legal showdown vs. a key plaintiff: Tata Communications. Indeed, a clerk representing U.S. District Court for the Eastern District of Virginia has entered a “default” for iYogi, which apparently failed to plead or otherwise defend itself in a timely manner against the Tata suit, according to a June 14 court filing viewed by ChannelE2E.

Tata Communications  (America) Inc. alleges 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 claimed. Tata is seeking to recover that figure and various fees.

iYogi apparently failed to respond to the suit. Now, company could potentially seek relief from the default, but must provide “good cause” for the failure to answer Tata’s lawsuit. Depending on the state, courts often allow additional time before a default judgement is permissible. ChannelE2E doesn’t know how much time, if any, iYogi has to potentially seek relief.

Multiple Lawsuits vs. iYogi

iYogi, which offers remote IT support and help desk services, faces lawsuits on multiple fronts. The controversy went mainstream 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.

Among the additional cases ChannelE2E has been tracking:

  • 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 Maine.biz. 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.

iYogi Class Action Lawsuit?

Meanwhile, multiple sources suggest that iYogi could soon face a class action lawsuit, organized by law firms assisting consumers across multiple U.S. states.

The consumers allege that iYogi has failed to offer contracted IT support services, and the consumers also claim iYogi phone and Internet support lines have been scaled back and/or aren’t responsive when consumers seek to end their support contracts.

Still, ChannelE2E has not seen an official class action filing against iYogi in 2016.

iYogi in December 2015 said the Washington State lawsuit was without merit, but the company has since gone quiet on the media front and has not responded to ChannelE2E’s request for additional comment.

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8 Comments

Comments

    Barbara Jones:

    iYogi is now renewing existing customers by offering support through a company called Avalance Security (http://avalancesecurity.com/index.php). If you see their website, it is a copy of iYogi’s site down to the ticker running at the bottom where they claim that Avalance has been featured in Forbes, Fortune, CNBC etc. I have checked and that is patently untrue.

    The payment gateway’s on iYogi’s site don’t work so it is likely that they are collecting through another entity.

    It seems that the company is hoodwinking regulators and its shareholders by collecting cash in a different entity. There is no level too low for them!

    Have any existing subscribers had this experience?

    Cheryl C.:

    Iyogi just called me offering to refund my contract by taking mr through steps for them to have access to my computer from my end. I was ver suspicious of that and decided to hang up.

    Cameron:

    For over six years I have been an iYogi customer and, by and large, I was pleased with their technical services, even though sometimes I had to wait overlong for the technician to come online; and I always hated their horrible music! And, yes, the “technicians” were also very aggressive and constant salesmen. But almost always they got the job done. In recent times, I’m experiencing what everyone else is now having to deal with. None of the six or seven telephone numbers get a response; their website’s links are unresponsive; and the http://www.1mb, etc. link doesn’t produce a response. I know about the lawsuits filed against iYogi, and I’ve come across an informative solicitation from a law firm which I imagine specializes in class-action suits. But I have a hunch that the ship has sailed (or sunk!). I’m very impressed with and grateful for the very knowledgeable and supportive information and analysis Channele2e is providing, and I hope that some good will come from your interest and efforts. Many thanks and best regards, Cameron

      Joe Panettieri:

      Hey Cameron: We’re sorry to learn about the problems you’ve described. We continue to track the iYogi story and plan to offer readers an update the week of July 11.
      -jp

    Lynne Wells:

    I too am an IYOGI customer who is now without technical support and owed money. How do I join the Class Action Suit? Always, have concerns about credit card information. Do I need to cancel card and request new one?

    Joe Panettieri:

    Hi Lynne: We are not familiar with any class action lawsuits against iYogi at this time but will update our coverage if that is to change. In terms of your payment dealings with iYogi, we’re not in a position to make recommendations.
    -jp

    Ed Chaya:

    I’ve used I yogi for 5 or 6 years, no problems until early in 2016. I tried all their numbers, live chat etc…, to contact them to no avail. But earlier today, 9/27/16, I answered a call from 337-232-5702, Lafayette LA. A gentleman with a heavy ethnic accent claimed to be with I yogi informed my comp. may be at risk and I should immediately log on to resolve any issues. I told him I was busy at the moment and he should try at a later time or tomorrow. He hung up immediately. All prior calls from yogi originated from india, so this was a red flag. Then the caller hung up without asking for a better time to call or thank you. So channele2e.com, do you recognize this number?

    Mary:

    I’ve used iyogi for technical assistance over the past year; however, I allowed my contract to end. Over the last 5 or 6 months, I began receiving calls from iyogi reps and I would tell them I no longer needed the service and to remove me from their call list. These calls have continued to this day and I finally blocked the 337-232-5702 number from my phone. They proceed to call and a call came in today at 2:00 pm.

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