LegalJul 10, 2026, 05:17 PM
Cognizant Settles Derivative Lawsuit for $5.5M
AI Summary
Cognizant Technology Solutions Corporation announced the preliminary approval of a $5.5 million settlement in a stockholder derivative action. The lawsuit, "Viswanatha Palempalli v. Michael Pastalos-Fox, et al.", alleged breach of fiduciary duty, waste of corporate assets, and FCPA violations. The settlement funds will be paid to Cognizant by its directors and officers insurance carriers, with a final approval hearing set for September 14, 2026.
Key Highlights
- Preliminary approval of $5.5 million settlement in stockholder derivative action.
- Settlement funds to be paid to Cognizant by D&O insurance carriers.
- Lawsuit alleged breach of fiduciary duty and FCPA violations.
- Plaintiff's counsel to request up to $1.83 million in fees and expenses.
- Settlement hearing scheduled for September 14, 2026.
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