Cognizant logo is seen in the image.
Credit: X/@Cognizant
New Delhi: Global IT services firm Cognizant on Tuesday said its Chief Financial Officer (CFO) Jatin Dalal has arrived at a settlement over the non-compete lawsuit filed by Wipro Ltd, and that the compensation and human capital committee has approved payment of about Rs 4 crore for the same.
The settlement resolves all pending disputes between Dalal and Wipro, Cognizant said in a statement.
In an SEC filing, Cognizant said on July 2, 2024, the compensation and human capital committee of Board of Directors of Cognizant Technology Solutions Corporation approved the company's payment of USD 505,087 (about Rs 4 crore) to CFO Jatin Dalal in connection with his settlement of lawsuit and related arbitration brought by his former employer, Wipro, over purported breach of non-compete and confidentiality obligations.
"The settlement was reached without admission of liability by either party," the SEC filing said.
Cognizant further said its payment covers Dalal's settlement payment to Wipro as well as reimbursement of his legal fee.
"I am grateful for my journey with Wipro and I am pleased to have this matter behind me. I'm looking 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.
The Cognizant statement also quoted Wipro's President and Chief Human Resource Officer Saurabh Govil as saying, "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," Govil said.
Cognizant also confirmed that a similar settlement has been reached regarding the lawsuit between Wipro Ltd and Mohammad Haque, the statement added.