SHAREHOLDER ALERT: Law Office of Brodsky & Smith, LLC Files Class Action Lawsuit Against Cognizant Technology Solutions Corporation (CTSH)
BALA CYNWYD, Pa., November 18, 2016 — Law Office of Brodsky & Smith, LLC announces that it has filed a class action lawsuit on behalf of purchasers of Cognizant Technology Solutions Corporation (“Cognizant”) (NASDAQ: CTSH) securities, who purchased or otherwise acquired Cognizant’s securities between February 27, 2015 and September 30, 2016, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”). The action was filed in the United States District Court for the District of New Jersey and is captioned The Ann B Johnson Living Trust v. Cognizant Technology Solutions Corporation, et al., No. 16-cv-08641.
Cognizant provides information technology services (“IT”), consulting, and business process services that enable its clients to operate more efficiently. The Company’s technical professionals work from the Company’s development and delivery centers, which are located throughout the world, as well as from client locations. The majority of Cognizant’s technical professionals are employed in India.
Throughout the Class Period, Defendants made false and misleading statements and failed to disclose material adverse facts about the Company’s business and operations. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Cognizant made improper payments to Indian officials in exchange for building permits and operating licenses for certain of the Company’s facilities in India; (2) Cognizant lacked effective internal controls over financial reporting; and (3) as a result, Defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
The truth about Cognizant’s business practices began to surface on September 30, 2016, when the Company announced that Gordon Coburn, the Company’s President, abruptly resigned from his position on September 27, 2016. Coinciding with this news, Cognizant disclosed in Form 8-K filed with the SEC that the Company had initiated an internal investigation regarding occurrences of bribery related to its delivery centers located in India.
On this news, the price of the Company’s common stock declined $7.29 per share, or more than 13%, from a close of $55.00 per share on September 29, 2016, to close at $47.71 per share on September 30, 2016.
The following week, on October 4, 2016, The Indian Express published an article about the Company’s internal corruption investigation and cited a Cognizant spokesperson who stated that the Company’s “investigation is currently focused on improper payments such as building licenses, permits, etc., involving a small number of Company-owned facilities in India.”
Cognizant shareholders may, no later than December 5, 2016, move the Court to serve as a lead plaintiff of the class. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you own shares of Cognizant common stock and wish to discuss this action, or if you have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 510, Bala Cynwyd, PA 19004, by e-mail at firstname.lastname@example.org, or calling toll free 1-877-LEGAL-90.
Brodsky & Smith, LLC is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and case action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and successfully recovered millions of dollars for our clients and shareholders.
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