International Tech Support Company Sued, ‘Shut Down’ by WA State Lawsuit
At one time iYogi was considered on of the world's biggest tech support companies. But after a series of lawsuits and growing suspicion over their practices, the firm has all but shut down.
Washington State Attorney General Bob Ferguson announced this week the state's multi-million dollar lawsuit against the India-based company has 'shut their doors'.
Founded in 2007 by a venture of Indian developers and two years later combining with a U.S. company, iYogi quickly rose to world prominence, but then just as fast became tainted by reports of limited success and other issues. The company was accused of not fulfilling on sub-contractor promises, and in 2014 leading tech support experts only rated them two out of five stars on a number of digital platforms.
Then in 2016, Ferguson filed suit against the firm claiming they pressured WA state customers into buying more services and programs than what they needed, often using 'scare' tactics. They allegedly told consumers if they didn't purchase more expensive or additional programs, their systems would be prey to hackers and other issues.
The company stock dropped by more than $260 million, and Ferguson said this week iYogi has basically shut it's doors. Some officials referred to the company as "boiler-room" or low-budget inexperienced tech support. The suit claimed they violated the state's Consumer Protection Act.
While the monetary damages are 'only' $500,000, the suit was what many say was the last nail in the company's coffin. Ferguson said this week iYogo is basically defunct, having shed nearly all it's employees, and it's U.S. based operations have been closed completely.