Cognizant inks $95 million deal with US shareholders over India bribery charges
Cognizant Technology Solutions Corp has settled a lawsuit alleging the information technology services company defrauding shareholders by hiding bribery to Indian officials for $95 million.
On Tuesday, a preliminary settlement of the proposed class action was filed in federal court in Newark, New Jersey, and must be approved by a judge.
On September 30, 2016, Cognizant’s stock dropped 13.3% after Teaneck, a New Jersey-based business, announced it was investigating bribery claims and possible violations of the federal Foreign Corrupt Practices Act.
Cognizant agreed to pay $25 million to settle a related US Securities and Exchange Commission civil investigation in February 2019.
Coburn and Schwartz were also charged with FCPA and other offenses by US prosecutors that month. Those criminal cases have yet to be resolved.