Cognizant Will Pay Rs 700 Crore To Settle Chennai Bribery Case: What Exactly Happened?
Global solution provider Cognizant Technology Solutions Corp has reached a $95 million settlement to resolve a lawsuit accusing that it authorized a contractor building the company’s new corporate campus in Chennai, India to pay a bribe of $2 million to senior Indian government officials .
The company, without admitting guilt, is asking the U.S. District Court for the District of New Jersey to approve the settlement.
“The Company and the other defendants expressly deny that the plaintiffs in the securities class action have asserted any valid claims as to any of them,”
Cognizant wrote in the SEC filing.
Cognizant Has Reached A $95 million Settlement To Resolve A Lawsuit!
Cognizant stated that the company and a group of investors had agreed to pay $95 million to settle the charges which include attorneys’ fees and litigation expenses.
This group of investors purchased its common shares between February 27, 2015, and September 29, 2016.
Allegation Against Cognizant Technology Solutions Corp
There were allegations on Cognizant in 2014, that it authorized a contractor building the company’s new corporate campus in Chennai, India to pay a bribe of $2 million to senior Indian government officials.
The former president Gordon Coburn and former chief legal officer Steven Schwartz denied wrongdoing in agreeing to settle.