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Cognizant: Cognizant to pay Rs 4 crore to settle Wipro CFO Jatin Dalal’s lawsuit

Global IT services giant Cognizant Technology Solutions on Tuesday announced that its chief financial officer (CFO) Jatin Dalal has reached a settlement in a non-compete lawsuit filed by his former employer Wipro by paying $505,087 (around Rs 4 crore) in connection with the arbitration case. “The terms of the settlement, which was reached without any admission of liability by either party, are confidential. The settlement resolves all outstanding disputes between Mr. Dalal and Wipro,” Cognizant said in a statement.

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“On July 2, 2024, the Compensation and Human Capital Committee of the Board of Directors of Cognizant Technology Solutions Corporation approved the payment by the Company of $505,087 to Mr. Jatin Dalal, the Company’s Chief Financial Officer, in connection with Mr. Dalal’s settlement of a lawsuit and related arbitration initiated by his former employer, Wipro Limited (Wipro)…”, according to a regulatory filing with the US Securities and Exchange Commission (SEC).

The arbitration sought damages and injunctive relief for Dalal’s alleged breaches of non-compete and confidentiality obligations arising under certain of Dalal’s fee agreements with Wipro upon joining the Company.

“The settlement was reached without any admission of liability by either party. The company’s payment includes Mr. Dalal’s settlement payment to Wipro, as well as reimbursement of his legal fees,” the lawsuit added.

This followed a more than seven-month-old breach of employment contract lawsuit filed by Indian IT giant Wipro against Dalal, who left the company as CFO at the end of November 2023 to join US-based rival Cognizant on December 1.

“I am grateful for my journey with Wipro and happy to have this behind me. I look forward to continuing to execute Cognizant’s growth agenda while delivering value to our customers, employees and shareholders,” Dalal said.

Saurabh Govil, President and Chief Human Resources Officer, Wipro, said, “We are happy that we have resolved this matter. We are glad that the matter has been resolved while protecting our contractual rights. We wish Jatin all the best in his future endeavours.”

Another similar case was also filed by Wipro against its former CEO Mohd Haque, who also joined Cognizant the same year. Wipro had made serious allegations that Haque was in possession of confidential information, and had uploaded and emailed “seven files” containing confidential information from his personal Gmail account in June last year.

Cognizant also confirmed that a similar settlement had been reached in the lawsuit between Wipro and Mohammad Haque.