Software firm Cognizant Technology Solutions Corporation on Tuesday (July 9) said it has resolved a lawsuit filed by Wipro Ltd against its former chief financial officer Jatin Dalal.
According to a US Securities and Exchange Commission (SEC) filing dated July 2, 2024, Cognizant’s board of directors approved a payment of $505,087 to cover the settlement and legal fees associated with the dispute.
“On July 2, 2024, the Compensation and Human Capital Committee of the Board of Directors of Cognizant Technology Solutions Corporation approved the Company’s payment of $505,087 to Jatin Dalal, the Company’s Chief Financial Officer, in connection with Dalal’s settlement of the lawsuit and related arbitration brought by his former employer, Wipro,” as per Cognizant’s filing with the SEC.
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Wipro had sought damages and injunctive relief, alleging that Dalal breached non-compete and confidentiality obligations under his compensation agreements by joining Cognizant.
The settlement was reached without any admission of liability by either party. The payment by Cognizant compensates Dalal for the settlement amount paid to Wipro and his legal expenses.
“The settlement was reached without admission of liability by either party. The Company’s payment covers Dalal’s settlement payment to Wipro as well as reimbursement of his legal fees,” the company said.
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“I am grateful for my journey with Wipro and I am pleased to have this matter behind me. I am looking forward to continuing to drive Cognizant’s growth agenda while delivering value to our clients, employees, and shareholders,” said Dalal.
“We are happy to have settled this matter. We are glad this issue has been resolved safeguarding our contractual rights. We wish Jatin well in his future endeavours,” said Saurabh Govil, President and Chief Human Resource Officer, at Wipro Ltd.
Further, Cognizant has confirmed that a similar settlement has been reached regarding the lawsuit between Wipro and former senior vice-president Mohammad Haque.
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Last year in November, Wipro had filed a suit in Bengaluru’s Civil Court against its former CFO Jatin Dalal seeking payment of compensation of ₹25,15,52,875 with interest of 18% for allegedly violating a clause in his employment contract with the company. Dalal resigned from Wipro in September 2023.
Allegedly, the non-compete clause prevents Dalal from joining a rival within one year of leaving the company, failing which he would be liable to compensate Wipro with the value of the restricted stock units (RSU) allotted to him or the sum of his total remuneration in the previous 12 months.
Shares of Wipro Ltd ended at ₹540.80, down by ₹0.45, or 0.083%, on the BSE.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
