Cognizant Tchnology Solutions Corporation was a New Jersey corporation whose common stock was registered with the SEC and traded on the NASDAQ. The majority of Cognizant’s operations in India were conducted through Cognizant Technology Solutions India Private Limited, the company's largest subsidiary.
Gordon J. Coburn served in several senior executive positions, ultimately as President, at Cognizant until his resignation in 2016.
Steven E. Schwartz served as Cognizant’s Executive Vice President, Chief Legal and Corporate Affairs Officer until his resignation in 2016.
According to the documents in this case, between 2014 and 2016 Coburn, Schwartz, and others, authorized a contractor to pay a $2 million bribe to a senior government official in connection with the construction of a corporate campus for Cognizant in Chennai, India.
On February 15, 2019, the SEC filed a civil complaint in the District of New Jersey against Coburn and Schwartz alleging direct violations of the anti-bribery and books and records provisions of the FCPA, aiding and abetting violations of the anti-bribery, books and records, and internal controls provisions of the FCPA, and making false statements to auditors.
On January 5, 2024, the court administratively terminated this proceeding pending the resolution of the related criminal proceeding. This termination was made without prejudice to the right of either party to reopen the proceedings within seven days of the adjudication of the criminal proceeding.
The DOJ has also filed an indictment against Coburn and Schwatz for FCPA violations, and that case is ongoing.
In a related administrative proceeding initiated on February 15, 2019, the SEC issued a cease and desist order against Cognizant. Under the terms of the proceeding, the SEC ordered Cognizant to cease and desist violations of the anti-bribery, books and records, and internal controls provisions of the FCPA. The SEC further ordered Cognizant to pay disgorgement of $16,394,351 plus prejudgment interest of $2,773,017 and a civil fine of $6 million.
On February 13, 2019, the DOJ formally declined to prosecute Cognizant pursuant to the agency's FCPA Corporate Enforcement Policy.
In a related settled administrative proceeding initiated on September 13, 2019, the SEC ordered Sridhar Thiruvengadam, Cognizant's former Chief Operating Officer to cease and desist violations of the books and records and internal controls provisions of the FCPA as well as violations of Exchange Act Rule 13b2-2 requiring accurate statements in management letters. Under the terms of the settlement, the SEC also ordered Thiruvengadam to pay a civil penalty of $50,000, which the SEC noted was not greater due to Thiruvengadam's cooperation.
