Cognizant inks $95 mn deal with US shareholders over India bribery charges

Cognizant Technology Solutions Corp has reached a $95 million settlement to resolve a lawsuit accusing the information technology services company of defrauding shareholders by concealing bribes to officials in India.

A preliminary settlement of the proposed class action was filed on Tuesday with the federal court in Newark, New Jersey, and requires a judge’s approval.

Shareholders accused Cognizant of failing to disclose payments made to obtain permits for facilities in “special economic zones,” including its Indian headquarters in Chennai, where it could enjoy tax and other benefits.

Cognizant’s share price fell 13.3% on Sept. 30, 2016, after the Teaneck, New Jersey-based company said it was looking into bribery allegations, and whether there were violations of the federal Foreign Corrupt Practices Act.