Cognizant has claimed in New Jersey to a district court that the litigation over improper transactions associated with locking SEZ licenses in India has assigned 2 former executives of Cognizant but not the firm itself. So, Cognizant informed the court that all claims in opposition to it must be dismissed.
A court case, filed last year by Amalgamated Bank, Union Asset Management Holding AG, the Fire and Police Pension Association of Colorado, and acting trustee for the Longview Collective Investment Funds, accused that Cognizant breached specific segments of the 1934 Securities Exchange Act by making “materially false, incomplete, and misleading claims that hide a bribery scam.” The plaintiffs also accused that this scam overrode the firm’s internal controls to make the bribery process easy.
Cognizant has answered in the newest court filing claiming: “Far from the ‘pervasive process’ to lock ‘profitable’ SEZ licenses that plaintiffs accuse, the conduct suspected in the Securities & Exchange Commission (SEC) and department of justice (DOJ) filings comprised only “a restricted group of rogue workers” who authorized improper transactions to get routine license and hide it from corporate management”.
In February, SEC claimed that Cognizant has decided to pay $25 Million to settle accusations that it breached the FCPA (Foreign Corrupt Practices Act), and two of the firm’s ex-officials were accused for their roles in making the payment process of millions of dollars easy in a bribe to an official of Indian government.
On a related note, earlier Cognizant, which has almost 2 Lakh workers in India, claimed that it will hand out more than 18% higher salary packages to entry-level engineers joining next year, as per media reports. Engineering candidates graduating in June 2020 will see the payment made by the US-located firm elevated to Rs 4 Lakh from Rs 3.38 Lakh per annum, they claimed.
Daniel Serrano had acquired considerable experience in writing and editing publications before recruited by Daily Industry Updates news portal as Editorial Manager. His key task is to conduct effective business reviews based on the most recent business strategies. Due to his stronghold and understanding over finance, marketing, business, and trade-related topics, he is known as a business counselor among the staff. His expertise in business-related topics is quite impressive. His business-related concepts are on fingertips, which aids in illustrating the business-related articles in brief and defined way, clear to even an amateur. He pursued his post graduation in Finance from a UK-based university.