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iYogi, OneCall Discuss Potential Lawsuit Settlement

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iYogi and OneCall Ltd. have been discussing a potential settlement in OneCall's breach of contract lawsuit against the remote IT services provider, ChannelE2E has learned.

An April 4 letter from OneCall's attorney to the United States District Court, Southern District of New York, disclosed the settlement discussions. ChannelE2E has viewed the letter. However, it's unclear where the iYogi-OneCall settlement discussions stand. And we don't know if iYogi is pursuing settlement discussions in additional lawsuits against the beleaguered remote support provider.

In recent months, iYogi has been the target of numerous lawsuits, including:

  • 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.
  • Feb. 18, 2016: 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.
  • March 14, 2016: 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.

iYogi in December 2015 said the Washington State lawsuit was false and baseless. The remote service provider has since gone silent on the matter. The company has not responded to numerous requests for comment from ChannelE2E.

Meanwhile, dozens of ChannelE2E readers allege that iYogi's remote support services have declined or stopped in recent months. Glassdoor, a company ratings website, contains numerous postings from alleged employees who say they didn't receive paychecks for services rendered.

Several sources indicate that some iYogi customers may pursue a class action lawsuit against the company for non-performance of services.

iYogi positions itself as an instant tech support provider for a range of diagnosis, repair, installation and security services.

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.