IT management, MSP

Lawsuits: iYogi Faces Two Potential Judgments

iYogi, the embattled IT service provider, remains locked in multiple lawsuits and potentially faces key judgments against the company over the next few weeks.

Indeed two separate cases...

1. Onecall is seeking a summary judgment in its $376,000 lawsuit against iYogi, according to a July 8 legal filing that ChannelE2E viewed. As of June 23, Onecall and iYogi also were exploring settlement negotiations, according to a separate legal filing ChannelE2E viewed. OneCall filed the suit in February 2016, alleging breach of contract against the remote IT help desk provider.

2. Tata Communications (America) Inc. is seeking a default judgment in its $1.154 million lawsuit against iYogi, according to a July 7 court filing that ChannelE2E viewed. Tata filed the suit in March 2016, alleging that iYogi failed to pay numerous telecom invoices.

iYogi's Legal Troubles, Lawsuits

iYogi is a venture-backed remote help desk provider that claims to support over 3 million users in 11 countries. However, numerous organizations and businesses have filed suit against the company over the past year -- alleging break of contract, nonpayment of services and other issues.

Some consumers, meanwhile, allege that iYogi has failed to fulfill IT support contracts. Dozens of readers have posted comments on ChannelE2E, alleging that they either can't reach the company or have been re-routed to other service providers -- some of which have used upsell and cross-sell tactics.

Rumors of a potential class action lawsuit have also surfaced against the company, though ChannelE2E has not seen any legal filings in that area.

iYogi in December 2015 denied any wronging in a lawsuit filed by the State of Washington, but the IT service provider has not commented publicly on the various suits since that time. The company has not replied to ChannelE2E's multiple requests for comments.

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.