Cognizant Pays CFO Jatin Dalal For Settlement In Wipro Lawsuit
Cognizant paid $505,087 to settle CFO Jatin Dalal’s non-compete clause lawsuit with Wipro.
Information technology major Cognizant Technology Solutions Corp. has paid $505,087 to Chief Financial Officer Jatin Dalal to settle his lawsuit with former employer Wipro Ltd.
In a lawsuit filed by Wipro, Dalal was accused of violating a non-compete clause in his employment contract. In addition to Rs 25.15 crore in damages, the company had demanded a yearly interest rate of 18% until the date of payment.
"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 Jatin Dalal, the company’s Chief Financial Officer, in connection with Dalal’s settlement of the lawsuit and related arbitration brought by his former employer, Wipro Limited,” Cognizant’s US Securities and Exchange Commission filing read.
Dalal's non-compete agreement stipulated that he had to wait a full year after his resignation date before working for any rival business. On Nov. 28, Wipro took legal action against Dalal in the Bengaluru civil court.
In response to the lawsuit, Dalal filed an application at the start of December under the Arbitration and Conciliation Act, which gives the court authority to compel arbitration between the parties.
Dalal’s petition was admitted as the Bengaluru City Civil Court referred the lawsuit to arbitration.
“The settlement was reached without admission of liability by either party. The company’s payment covers Dalal’s settlement payment to Wipro as well as reimbursement of his legal fees,” the exchange filing further read.
On Dec. 1, Dalal began serving as CFO at Cognizant after getting appointed in September. He took over from Jan Siegmund, who planned to retire in early 2024. Dalal became the CFO at Wipro in 2015 after working there for 21 years. Nov. 30, 2023, marked the end of his employment at Wipro.
