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The Cognizant brand is seen on the SIBOS banking and monetary convention in Toronto, Ontario, Canada October 19, 2017. Image taken October 19, 2017. REUTERS/Chris Helgren
Sept 8 (Reuters) – Cognizant Know-how Options Corp (CTSH.O) 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 courtroom 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 “particular financial zones,” together with its Indian headquarters in Chennai, the place it may take pleasure in tax and different advantages.
Cognizant’s share value fell 13.3% on Sept. 30, 2016, after the Teaneck, New Jersey-based firm stated it was trying into bribery allegations, and whether or not there have been violations of the federal Overseas 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 Change Fee civil probe.
U.S. prosecutors additionally charged Coburn and Schwartz that month with FCPA and different violations. These prison instances stay pending.
Attorneys for Coburn and Schwartz didn’t instantly reply on Wednesday to requests for remark.
Reporting by Jonathan Stempel in New York
Enhancing by Mark Potter
Our Requirements: The Thomson Reuters Trust Principles.
