(Reuters) – Cognizant Technology Solutions Corp. has reached a $ 95 million settlement to settle a lawsuit accusing the IT company of defrauding shareholders by hiding bribes from officials in India.
A preliminary settlement of the proposed class action lawsuit was filed Tuesday in the federal court in Newark, New Jersey, and requires the approval of a judge.
Shareholders accused Cognizant of failing to provide payments for permits for facilities in "special economic zones", including its Indian headquarters in Chennai, where it could enjoy taxes and other benefits.
Cognizant's share price fell 13.3% on September 30, 2016, after Teaneck, the New Jersey-based company, said it was investigating bribes, and whether there were violations of the Federal Foreign Corrupt Practices Act.
The defendants, including former President Gordon Coburn and former General Counsel Steven Schwartz, denied crimes in n agree to solve. Cognizant said it expected insurers to cover a significant majority of the settlement payment.
In February 201
U.S. Prosecutors also charged Coburn and Schwartz that month with FCPA and other violations. These criminal cases remain.