American law firm says Capgemini-iGate sale price too low, investigating breach of duty

American law firm Brodsky & Smith has said that it is going to investigate potential claims against the board of directors of iGate for "possible breaches of fiduciary duty and other violations of state law in connection with the sale of the Company to CapGemini." 

Brodsky & Smith, LLC is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits. 

The firm said, "The investigation concerns whether the Board of iGATE breached their fiduciary duties to shareholders by failing to adequately shop the Company before agreeing to enter into this transaction, and whether Cap Gemini is underpaying for iGATE." It alleges that analysts peg $55 per share price tag for each iGate share as against $48 per share agreed upon with Capgemini for the sale. 

It said, "The transaction may both undervalue iGATE and raises potential conflicts of interests as iGATE co-founders and co-chairmen could collecting more than $1 billion dollars between them."