Cognizant Technology Solutions Corporation (Nasdaq: CTSH)
A class action has been filed in the United States District Court for the District of New Jersey on behalf of purchasers of Cognizant Technology Solutions Corporation (Nasdaq: CTSH) common stock between February 25, 2016 and September 30, 2016, (the “Class Period”).
The complaint charges Cognizant and two of its executive officers with violations of the Securities Exchange Act of 1934.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information concerning the Company’s business, operations and prospects, including that the Company had made improper payments in order to obtain permits and building licenses for some of its 12 facilities in India. Additionally, the complaint alleges that the Company failed to disclose that there were material defects in its internal controls and procedures over financial reporting. As a result of defendants’ false statements and/or omissions, Cognizant shares traded at artificially inflated prices of over $63 per share during the Class Period, allowing Company insiders to sell almost $44 million worth of their Cognizant shares at inflated prices, including $29 million worth of stock sold by the Company’s CEO, defendant Francisco D’Souza, over a four-day period in July.
On September 30, 2016, Cognizant announced that it was conducting an internal investigation in order to determine whether payments it had made to facilities in India were improper and constituted possible violations of the U.S. Foreign Corrupt Practices Act. The Company also stated that it had notified the U.S. Department of Justice and the SEC of the investigation. Additionally, the Company disclosed that Gordon Coburn, the Company’s President, had resigned effective September 27, 2016. As a result of this news, Cognizant stock declined more than 13% on heavy volume. Later, on October 4, 2016, an article in The Indian Express indicated that the investigation was “focused on improper payments such as building licences, permits, etc., involving a small number of Company-owned facilities in India.”
If you are a current shareholder and purchased stock between February 25, 2016 and September 30, 2016, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
Please Note: Neither the submission to nor the receipt of information by The Law Offices of Marc S. Henzel or one of its attorneys through this website constitutes an agreement by the firm to represent the individual and does not create an attorney-client relationship.