Lawstreet Journal

Lawsuit filed against board members and key Executives of Cognizant by former employee

Lawstreet Journal 22 Jul 2020 4:45pm

Image courtesy: Lawstreet Journal Business Lawsuit filed against board members and key Executives of Cognizant by former employee

An ex-employee of IT services provider Cognizant has filed a lawsuit against current and former board members as well as key executives for allegedly misleading shareholders regarding a bribery scandal in India.

This lawsuit has been filed by Ravindra Guyyala in the US District Court of Delaware and it follows a separate ongoing securities class-action lawsuit filed by the shareholders of Cognizant. It has been alleged that the company did not mention the bribery to the shareholders.

The defendants in the petition are former CEO Francisco D'Souza, current CFO Karen McLoughlin, former President Gordon Coburn, and former Chief Legal Officer Steven E Schwartz and board members including current CEO Brian Humphries.

Ravindra Guyyala, a common stock owner of Cognizant and currently based in Little Rock, Arkansas, as per his profile on LinkedIn alleged that the executives and board members have breached their duties by issuing false, misleading statements and omitting vital information in the company’s public filings about the bribe payments to get approval for the construction of the new campus in Chennai.

Cognizant allegedly authorized a contractor to pay $2 million bribe to a government official for issuance of a planning permit for its new campus in the South India City of Chennai, in 2014. The payment with a scheme to conceal $2.5 million as reimbursement to the contractor was authorized by 2 senior executives of Cognizant's US headquarters, as per the US Securities and Exchanges Commission (SEC), who investigated the issue between 2014 and 2016.

Former President Gordon Coburn and some other executives… Continue Reading...

Tagged: Cognizant  
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