Initial Reports Suggest $95 Million Settlement Agreement Has Been Forged Between Cognizant Technology Securities Corp. And Its Investors
Company investors and company Cognizant Technology, were reportedly able to agree on a settlement that would make the latter pay $95 million to end the SEC lawsuit filed against it.
A Look At The Legal Troubles That Haunted Cognizant
The class action lawsuit that Cognizant faced included allegations that the company’s actions hurt the business’ investors and their financial stakes in the company. Cognizant reportedly bribed one government personnel to give them the necessary building permits to set up a campus overseas to reap different benefits.
Cognizant’s alleged illegal dealings with foreign officials ended up federal authorities putting it under investigation. As soon as it broke the news out, its stocks status started to stumble down due to the public image blowout.
Later on, officials from the Securities and Exchange Commission or SEC launched a lawsuit against the company revolving around the said issue. The latest Cognizant SEC Settlement deal between the parties involved in the case ended the legal proceedings.
Initial Settlement Information
The $95 million Cognizant SEC Settlement fund is said to be handled on behalf of all the qualified Class group members. It would be deposited into a special account that would bear interest days as soon as the court approves the agreement provisions.
Cognizant company’s key people, Gordon Coburn as President and Steven Schwartz as Chief Legal and Corporate Affairs Officer, have vehemently denied any involvement in the bribery scandal the company got involved in.
The New Jersey court that handled the Cognizant lawsuit is said to have repeatedly rejected the company’s team to have the complaints against it dropped.
About The Company
Cognizant Technology Securities Corp. is a New Jersey-based company that provides various services to its clients, including technology strategy consulting services to data handling and business intelligence technology systems. Founded in 1988, the company is believed to have more than 30,000 workers under its umbrella.
Editor’s Note on Cognizant SEC Settlement For $95 Million:
This article features the latest information about the $95 million settlement agreement between Cognizant Technology Securities Corp. and its business investors after a damning bribery scandal reportedly carried out by Cognizant executives hurt its stocks. We also recommend you to read about the Invisalign Stock Settlement.
Case Name(s) & No.(s): In re: Cognizant Technology Solutions Corporation Securities Litigation; Case No.: 2:16-cv-06509
Jurisdiction: United States (U.S.) District Court for the District of New Jersey
Allegation(s): Cognizant is responsible for the decrease in stocks due to its illegal bribery deal.
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