Settlement Reached: Cognizant Pays Rs 4 Crore to Resolve CFO's Legal Dispute

Cognizant's CFO Jatin Dalal has reached a settlement with Wipro over a non-compete lawsuit. The settlement, approved by Cognizant's compensation and human capital committee, includes a payment of about Rs 4 crore to cover related legal fees. The resolution was made without any admission of liability.

Global IT services firm Cognizant announced on Tuesday that its Chief Financial Officer (CFO) Jatin Dalal has settled a non-compete lawsuit filed by Wipro Ltd. The compensation and human capital committee has approved a payment of about Rs 4 crore for the settlement.

The resolution puts to rest all pending disputes between Dalal and Wipro, according to a statement from Cognizant.

In an SEC filing, Cognizant revealed that on July 2, 2024, the compensation and human capital committee of its Board of Directors approved the payment of USD 505,087 (approximately Rs 4 crore) to CFO Jatin Dalal in connection with settling the lawsuit and arbitration initiated by Wipro over alleged breaches of non-compete and confidentiality obligations. The settlement was reached without either party admitting liability. Cognizant's payment covers Dalal's settlement with Wipro as well as his legal fees.

"I am grateful for my journey with Wipro and pleased to have this matter behind me. I look forward to continuing to drive Cognizant's growth agenda while delivering value to our clients, employees, and shareholders," Dalal said in a statement issued by Cognizant.

Saurabh Govil, President and Chief Human Resource Officer of Wipro, was also quoted in the statement saying, "We are happy to have settled this matter. We are glad this issue has been resolved safeguarding our contractual rights and wish Jatin well in his future endeavours." Cognizant confirmed that a similar settlement has been reached regarding a lawsuit between Wipro Ltd and Mohammad Haque.

(With inputs from agencies.)