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Cognizant settles Wipro CFO lawsuit; pays Rs 4 crore in settlement | Company News

Cognizant CFO Jatin Dalal

Nasdaq-listed information technology services leader Cognizant said Tuesday that its Chief Financial Officer Jatin Dalal has reached a settlement of a non-compete lawsuit filed by Wipro.

The terms of the settlement, reached without any admission of liability by either party, are confidential.

The settlement resolves all pending disputes between Dalal and Wipro, the company said in a statement.

Cognizant paid $505,087 (approximately Rs 4.1 crore) in connection with the Dalal settlement.

Cognizant’s regulatory filings further stated that the payment by the company covered Dalal’s settlement payment to Wipro, as well as reimbursement of his legal fees.

“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 in a statement.

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

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

Dalal, who worked for Wipro for 21 years, resigned from the company in September 2023 and, in a surprise announcement, joined rival Cognizant as CFO in December. The same month, Wipro filed a lawsuit against Dalal, which then accused Dalal of violating a “non-compete” clause by joining the rival within 12 months of his resignation.

Wipro has filed a similar complaint against Haque. He was senior vice president and head of the Americas healthcare and medical devices business.

First published: July 09, 2024 | 17:38 IST