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

Sept 8 (Reuters) – Cognizant Technology Answers Corp (CTSH.O) has attained a $95 million settlement

Sept 8 (Reuters) – Cognizant Technology Answers Corp (CTSH.O) has attained a $95 million settlement to take care of a lawsuit accusing the info engineering services enterprise 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 needs a judge’s acceptance.

Shareholders accused Cognizant of failing to disclose payments manufactured to acquire permits for facilities in “unique economic zones,” which includes its Indian headquarters in Chennai, where by it could appreciate tax and other rewards.

Cognizant’s share value fell 13.3% on Sept. 30, 2016, soon after the Teaneck, New Jersey-primarily based business claimed it was searching into bribery allegations, and no matter if there ended up violations of the federal Overseas Corrupt Procedures Act.

The defendants, like previous president Gordon Coburn and previous main legal officer Steven Schwartz, denied wrongdoing in agreeing to settle. Cognizant claimed it predicted insurers to protect a substantial majority of the settlement payment.

In February 2019, Cognizant agreed to pay out $25 million to settle a associated U.S. Securities and Exchange Fee civil probe.

U.S. prosecutors also billed Coburn and Schwartz that thirty day period with FCPA and other violations. People felony instances continue to be pending.

Attorneys for Coburn and Schwartz did not immediately react on Wednesday to requests for remark.

Reporting by Jonathan Stempel in New York
Editing by Mark Potter

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