SAN DIEGO & TEANECK, N.J.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of Cognizant Technology Solutions Corporation (NASDAQ: CTSH) breached their fiduciary duties to shareholders. Cognizant, a professional services company, provides consulting, technology, and outsourcing services worldwide.
Shareholder Class Action Alleging Defendants Made Materially False and Misleading Statements to Conceal Bribery Scheme Survives Motion to Dismiss
Investors filed a class action complaint against Cognizant for alleged violations of the Securities Exchange Act of 1934 between February 27, 2015 and September 29, 2016. According to the complaint, Cognizant officials engaged in an illegal bribery scheme by making improper payments to obtain permits and building licenses for some of the company's facilities in India. In so doing, Cognizant failed to enforce the company's controls related to real estate and procurement in connection with those facilities, all while falsely assuring investors that the company operated under strict compliance with its anticorruption policy. Further, Cognizant incorrectly allocated the bribes resulting in an overstatement of earnings. On August 8, 2018, Senior U.S. District Court Judge William H. Walls denied in part defendants' motion to dismiss plaintiff's complaint, paving the way for litigation to proceed. On October 29, 2018, investors appealed the decision to the Third Circuit.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/cognizant-technology-solutions-jan-19/
Cognizant Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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