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Cognizant reaches $95 mln settlement with U.S. shareholders above India bribery allegations

The Cognizant symbol is observed at the SIBOS banking and monetary convention in Toronto, Ontario, Canada Oct 19, 2017. Image taken October 19, 2017. REUTERS/Chris Helgren

Sept 8 (Reuters) – Cognizant Technologies Remedies Corp (CTSH.O) has attained a $95 million settlement to resolve a lawsuit accusing the information and facts technological innovation providers corporation of defrauding shareholders by concealing bribes to officers in India.

A preliminary settlement of the proposed class motion was submitted on Tuesday with the federal courtroom in Newark, New Jersey, and involves a judge’s approval.

Shareholders accused Cognizant of failing to disclose payments produced to attain permits for services in “specific financial zones,” such as its Indian headquarters in Chennai, in which it could love tax and other advantages.

Cognizant’s share selling price fell 13.3% on Sept. 30, 2016, just after the Teaneck, New Jersey-primarily based corporation said it was wanting into bribery allegations, and whether there were being violations of the federal Foreign Corrupt Procedures Act.

The defendants, together with former president Gordon Coburn and previous main authorized officer Steven Schwartz, denied wrongdoing in agreeing to settle. Cognizant reported it envisioned insurers to address a significant the greater part of the settlement payment.

In February 2019, Cognizant agreed to pay back $25 million to settle a relevant U.S. Securities and Trade Fee civil probe.

U.S. prosecutors also charged Coburn and Schwartz that thirty day period with FCPA and other violations. Individuals legal scenarios keep on being pending.

Legal professionals for Coburn and Schwartz did not immediately reply on Wednesday to requests for remark.

Reporting by Jonathan Stempel in New York
Modifying by Mark Potter

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