Cognizant settled Wipro’s lawsuit against CFO Jatin Dalal for Rs 4 crore

Cognizant Technology Solutions, a global IT services giant, announced on Tuesday that the company has settled a Non-compete lawsuit against Jatin Dalal, chief Financial Officer (CFO), filed by his previous company, Wipro. It involves a payment of $505,087 (approximately Rs 4 crore) for settlement related to an arbitration case.

In a statement cognizant noted, “The terms of the settlement, reached without admission of liability by either party, are confidential and resolve all pending disputes between Mr. Dalal and Wipro.”

According to a regulatory filing with the US SEC, on July 2, 2024, the Compensation and Human Capital Committee of the Board of Directors of Cognizant Technology Solutions Corporation approved the Company’s payment of $505,087 to Dalal, in connection with his settlement of the lawsuit and related arbitration brought by his former employer, Wipro Limited (Wipro).

The arbitration sought damages and injunctive relief based on allegations that Dalal breached non-compete and confidentiality obligations of his previous agreements with Wipro upon joining Cognizant.

The settlement, made without admission of liability by either party, includes payment covering Mr. Dalal’s settlement with Wipro and reimbursement of his legal fees.

This settlement follows a lawsuit filed more than seven months ago by Wipro, alleging breach of employment contract against Dalal, who left Wipro as CFO in November 2023 to join Cognizant in December of the same year.

Wipro had also filed a similar lawsuit against another former senior executive, Mohd Haque, who joined Cognizant around the same time. Wipro accused Haque of possessing confidential information and transferring “seven files” via personal email. Cognizant confirmed that a similar settlement has been reached in the lawsuit between Wipro and Mohammad Haque.