Cognizant Technology Solutions Corp has reached a $95 million settlement to resolve a lawsuit accusing the data expertise companies firm of defrauding shareholders by concealing bribes to officers in India.
A preliminary settlement of the proposed class motion was filed on Tuesday with the federal court docket in Newark, New Jersey, and requires a decide’s approval.
Shareholders accused Cognizant of failing to reveal funds made to acquire permits for services in “special economic zones,” together with its Indian headquarters in Chennai, the place it might take pleasure in tax and different advantages.
Cognizant’s share worth fell 13.3 per cent on Sept. 30, 2016, after the Teaneck, New Jersey-based firm stated it was wanting into bribery allegations, and whether or not there have been violations of the federal Foreign Corrupt Practices Act.
The defendants, together with former president Gordon Coburn and former chief authorized officer Steven Schwartz, denied wrongdoing in agreeing to settle. Cognizant stated it anticipated insurers to cowl a considerable majority of the settlement fee.
In February 2019, Cognizant agreed to pay $25 million to settle a associated U.S. Securities and Exchange Commission civil probe.
U.S. prosecutors additionally charged Coburn and Schwartz that month with FCPA and different violations. Those felony instances stay pending.
Lawyers for Coburn and Schwartz didn’t instantly reply on Wednesday to requests for remark.