Bengaluru: The row between the IT-services company iGate and its former CEO Phaneesh Murthy has finally come to an end as both the parties agreed for an out of court settlement.
The Nasdaq-listed company has agreed to pay a lumpsum amount of $4.6 million to Murthy for settling the defamation and breach-of-contract case that he had filed against the company.
As a matter of fact, Murthy was alleged to have concealed his relationship with the company's investor relations head, Araceli Roiz, for which he was fired in May 2013.
Seven months later, he filed a suit against iGate charging it with withholding 5,00,000 invested stocks and various benefits due to him. He also claimed other termination benefits and $6,000 per month that he was expected to get as medical benefit even after he left the company. He also refuted iGate's claims that it was not aware of his relationship with Roiz.
In retaliation, in March last year, iGate also filed a complaint against Murthy that it suffered significant losses due to Murthy's non-disclosure of his relationship with the subordinate employee and hence claimed compensation for the same.
iGate alleged that Murthy notified the company about his mediation with the Roiz only when it became unsuccessful and the latter slammed claims against him and the company.
Finally, a call was taken by the current CEO of iGate, Ashok Vemury, basis which the company agreed for legal settlement.
Both the parties have agreed to not to divulge the details of settlement.
