Cognizant announced on Tuesday that its Chief Financial Officer, Jatin Dalal has reached a settlement in the non-compete lawsuit filed by Wipro. The compensation and human capital committee has approved a payment of Rs 4 crore for this settlement.
The settlement resolves all pending disputes between Dalal and Wipro, Cognizant said in a statement.
Earlier this week, Cognizant disclosed in an SEC filing that its compensation and human capital committee has approved a payment of $505,087 (around Rs 4 crore) to CFO Jatin Dalal. This payment settles the lawsuit and related arbitration initiated by Dalal's former employer, Wipro, for alleged breaches of non-compete and confidentiality obligations.
Advertisement
"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".
Advertisement
"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.
At 9:55 am, Wipro's shares were trading at Rs 539 price level, down by 0.37 per cent on the National Stock Exchange.
(With inputs from PTI)
Just one email a week