U.S. Justice Department Drops High-Profile Foreign Bribery Case

A federal judge dismissed the prosecution of two former Cognizant Technology Solutions executives for foreign bribery. The case against Gordon Coburn and Steven Schwartz was dropped following a reevaluation linked to former President Trump's executive order pausing enforcement of the Foreign Corrupt Practices Act.

In a significant legal development, a federal judge has agreed to terminate the prosecution of two former executives from Cognizant Technology Solutions. This marks the first instance of the U.S. Department of Justice publicly dropping a foreign bribery case since former President Donald Trump's administration halted enforcement of a key anti-bribery legislation.

The decision, delivered by U.S. District Judge Michael Farbiarz in Newark, New Jersey, was made with prejudice, ensuring that the charges cannot be revived. It followed a recommendation by acting U.S. Attorney Alina Habba, who had ties to Trump. The dismissal reflects a recent reassessment of the executive order introduced by Trump, which put a pause on the enforcement of the Foreign Corrupt Practices Act.

Coburn and Schwartz were initially charged in 2019 for allegedly authorizing a $2 million bribe to an Indian official to secure construction permits in Chennai. Both maintained their innocence, and Cognizant settled related civil charges with the SEC for $25.2 million. Legal representatives for the defendants expressed satisfaction, emphasizing the unwarranted nature of the charges.

(With inputs from agencies.)