RM Law announces that a class action lawsuit has been filed in United States District Court for the District of New Jersey on behalf of all persons or entities that purchased the common stock of Cognizant Technology Solutions Corporation (“Cognizant” or the “Company”) (NASDAQ: CTSH) between February 25, 2016 and September 30, 2016, inclusive (the “Class Period”).
Cognizant shareholders may, no later than December 5, 2016, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Cognizant and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/ctsh.
According to the complaint, on February 25, 2016, Cognizant filed a Form 10-K for the fiscal year 2015 with the U.S. Securities and Exchange Commission, attesting to the accuracy of financial reporting, the disclosure of any material changes to the company’s internal controls over financial reporting, and the disclosure of all fraud. The complaint alleges, however, that Cognizant officials failed to disclose that the company made improper payments for gaining permits and building licenses for some of its twelve facilities in India, and that the company lacked effective internal controls over financial reporting.
On September 30, 2016, Cognizant announced the resignation of the company’s president on September 27, 2016. That same day, Cognizant filed a Form 8-K with the SEC revealing that it is conducting a corruption probe involving possible violations of the U.S. Foreign Corrupt Practices Act and other applicable laws. The company further stated that the investigation is being conducted under the oversight of the Audit Committee, with special assistance from outside counsel, and is focused on a small number of facilities.
On this news, Cognizant stock fell $7.29 per share, or over 13%, to close at $47.71 per share on September 20, 2016.
If you are a member of the class, you may, no later than December 5, 2016, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed 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. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM Law or other counsel of your choice, to serve as your counsel in this action.