Cognizant Investigating Indian Payments
September 30 2016 - 9:50AM
Dow Jones News
Cognizant Technology Solutions Corp. said it was conducting a
probe into whether payments in India violated a federal
anti-foreign-corruption act, and that its president had
resigned.
Shares dropped 5.8% to $51.83 in premarket trading on the
news.
The company said Friday that it notified the Justice Department
and the U.S. Securities and Exchange Commission that it was
conducting an internal investigation into whether payments relating
to facilities in India were made improperly and possibly violated
the U.S. Foreign Corrupt Practices Act.
Cognizant also said in the same filing that President Gordon
Coburn resigned and would be replaced by Raj Mehta, who had been
the chief executive for IT Services. No reason was given for Mr.
Coburn's resignation, and the company didn't immediately respond to
requests for comment on whether the resignation was related to the
investigation.
While the investigation is in its early stages, the board's
audit committee and outside lawyers are focusing it on a "small
number of company-owned facilities."
At the end of 2015, the company had 162,500 employees, or nearly
three-quarters of its workforce, in India across 45 locations with
22.6 million square feet.
Cognizant Technology provides information technology, consulting
and business process services.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
September 30, 2016 09:35 ET (13:35 GMT)
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