Robbins Arroyo LLP: Cognizant Technology Solutions Corporation (CTSH) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Cognizant Technology Solutions Corporation (NASDAQGS: CTSH) in the U.S. District Court for the District of New Jersey. The complaint is brought on behalf of all purchasers of Cognizant securities between February 27, 2015 and September 30, 2016, for alleged violations of the Securities Exchange Act of 1934 by Cognizant’s officers and directors. Cognizant provides information technology, consulting, and business process services worldwide.
Cognizant Accused of Improperly Gaining Permits for Its Facilities in India
According to the complaint, on February 27, 2015, Cognizant filed a Form 10-K for the fiscal year ended December 31, 2014 with the U.S. Securities and Exchange Commission (“SEC”), attesting to the accuracy of financial reporting, the disclosure of any material changes to the company’s internal controls over financial reporting, and the disclosure of all fraud. The complaint alleges, however, that Cognizant officials failed to disclose that the company made improper payments to Indian officials in exchange for building permits and operating licenses for some of its facilities in India, and that the company lacked effective internal controls over financial reporting.
On September 30, 2016, Cognizant announced the resignation of the company’s president on September 27, 2016. That same day, Cognizant filed a Form 8-K with the SEC revealing that it is conducting a corruption probe involving possible violations of the U.S. Foreign Corrupt Practices Act and other applicable laws. The company further stated that the investigation is being conducted under the oversight of the Audit Committee, with special assistance from outside counsel, and is focused on a small number of facilities. On this news, Cognizant’s stock fell $7.29 per share, or over 13%, to close at $47.71 per share on September 30, 2016.
Cognizant Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
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