On October 27th, 2016, Strauss Troy filed a class action lawsuit on behalf of all purchasers of Cognizant Technology Solutions Corporation (“Cognizant” or the “Company”) (NASDAQ: CTSH). The Complaint was filed in the United States District Court for the District of New Jersey on behalf of investors who purchased shares in Cognizant during the period from February 25, 2016 through September 30, 2016 (the “Class Period”).
The Complaint alleges that Cognizant and certain of its officers violated federal securities laws by: (i) issuing a series of false and misleading statements; (ii) failing to maintain effective internal controls over its financial reporting; and (iii) failing to disclose that the Company made improper payments for permits and building licenses for some of its facilities in India.
On September 30, 2016, the Company filed a Form 8-K which revealed for the first time that the Company was conducting an internal investigation into whether payments relating to their facilities in India were improper and in violation of the US Foreign Corrupt Practices Act. The Company also disclosed that the President of Cognizant had resigned on September 27, 2016. As a result of these announcements on September 30, 2016, the price of Cognizant’s common stock fell over 17% and wiped out nearly $4.4 billion in Cognizant’s market capital.
Plaintiffs seek to recover damages on behalf of themselves and all other investors who purchased Cognizant common stock during the Class Period, excluding Defendants and their affiliates. Plaintiffs are represented by Strauss Troy, a law firm with extensive experience in prosecuting class actions for violations of the federal securities laws. If you are interested in becoming a lead plaintiff, you may file a motion with the court no later than December 5, 2016, and request that the court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of class members. If you would like more information about the Cognizant shareholder lawsuit, or have any questions concerning your rights or interests, please contact:
Richard S. Wayne, Esq.,Robert R. Sparks, Esq. or Annie C. Jansen, STRAUSS TROY, 150 E. Fourth Street, Cincinnati, Ohio 45202 (513) 621-2120, rswayne@strausstroy.com, rrsparks@strausstroy.com or acjansen@strausstroy.com.