Cognizant Settle CFO Jatin Dalal’s Lawsuit with Wipro, Pays Rs.4 Crore

Cognizant Settle CFO Jatin Dalal’s Lawsuit with Wipro, Pays Rs.4 Crore

Cognizant Settle CFO Jatin Dalal’s Lawsuit with Wipro, Pays Rs.4 Crore

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Cognizant settles non-compete lawsuit involving its CFO Jatin Dalal and his former employer Wipro with a substantial payment.

Cognizant Technology Solutions, a leading IT services and digital transformation provider, announced that its Chief Financial Officer (CFO) Jatin Dalal has reached a settlement in the non-compete lawsuit filed by his former employer, Wipro. The settlement involved a payment of $505,087 (approximately ₹4 crore). 

Settlement Details:

Regulatory Filing: According to a regulatory filing with the Securities and Exchange Commission (SEC) on Tuesday, the Compensation and Human Capital Committee of the Board of Directors of Cognizant approved the payment to Jatin Dalal to settle the lawsuit and related arbitration brought by Wipro Ltd.

Wipro sought damages and injunctive relief, claiming Mr. Dalal breached non-compete and confidentiality obligations under his compensation agreement. Jatin Dalal left Wipro as its CFO in November 2023 and joined Cognizant in December 2023, leading to a legal battle that lasted seven months.

The settlement was reached without any admission of liability by either party. The repayment covers Mr. Dalal’s settlement payment to Wipro and reimbursement of his legal fees. The terms of the settlement remain confidential, resolving all pending disputes between Mr. Dalal and Wipro.

Statements from Parties:

Jatin Dalal, said, “I am grateful for my journey with Wipro and 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.”

Saurabh Govil, Chief Human Resource Officer, Wipro stated “We are glad this issue has been resolved safeguarding our contractual rights. We wish Jatin well in his future endeavors.”

Cognizant also mentioned that a lawsuit involving former Wipro Senior Vice President (SVP) Mohammad Haque had been settled. The company did not provide further details about this settlement.

The lawsuit against Jatin Dalal was initially filed by Wipro in November 2023. He was accused of violating the non-compete clause in his employment contract by joining Cognizant within 12 months of his departure. The matter was referred to arbitration by the Bengaluru City Civil Court in a hearing on January 3. Wipro emphasized that the lawsuit was not personal but aimed at upholding contractual obligations. In particular as, Mr. Dalal’s had access to sensitive information during his tenure at Wipro.

The settlement marks the end of a contentious legal dispute, allowing both Cognizant and Jatin Dalal to focus on future growth and strategic initiatives while Wipro safeguards its contractual rights.