Robbins Arroyo LLP: Cognizant Technology Solutions Corp. (CTSH) Misled Shareholders According to a Recently Filed Class Action
October 07 2016 - 01:45PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed against Cognizant Technology
Solutions Corporation (NASDAQGS: CTSH) in the U.S. District Court
for the District of New Jersey. The complaint is brought on behalf
of all purchasers of Cognizant securities between February 25, 2016
and September 30, 2016, for alleged violations of the Securities
Exchange Act of 1934 by Cognizant's officers and directors.
Cognizant provides information technology, consulting, and business
process services worldwide.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/cognizant-technology-solutions-corporation
Cognizant Accused of Improperly Gaining Permits for Its
Facilities in India
According to the complaint, on February 25, 2016, Cognizant
filed a Form 10-K for the fiscal year 2015 with the U.S. Securities
and Exchange Commission, attesting to the accuracy of financial
reporting, the disclosure of any material changes to the company's
internal controls over financial reporting, and the disclosure of
all fraud. The complaint alleges, however, that Cognizant officials
failed to disclose that the company made improper payments for
gaining permits and building licenses for some of its twelve
facilities in India, and that the company lacked effective internal
controls over financial reporting.
On September 30, 2016, Cognizant announced the resignation of
the company's president on September 27, 2016. That same day,
Cognizant filed a Form 8-K with the SEC revealing that it is
conducting a corruption probe involving possible violations of the
U.S. Foreign Corrupt Practices Act and other applicable laws. The
company further stated that the investigation is being conducted
under the oversight of the Audit Committee, with special assistance
from outside counsel, and is focused on a small number of
facilities. On this news, Cognizant stock fell $7.29 per share, or
over 13%, to close at $47.71 per share on September 30, 2016.
Cognizant Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20161007005696/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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