Cognizant Technology Solutions (Cognizant) on Tuesday said chief financial officer (CFO) Jatin Dalal has reached a settlement in the non-compete lawsuit filed by Wipro. Cognizant will pay $505,087 (₹4 crore) to Dalal to settle the dispute and arbitration with his former employer.
Cognizant said in a regulatory filing that on July 2, the compensation and human capital committee of the board of directors of the company approved its payment of $505,087 to Dalal. This it added is related to Dalal’s settlement of the lawsuit and related arbitration brought by Wipro.
The Bengaluru-based company had sought to ``obtain damages and injunctive relief arising out of Dalal’s purported breach of non-compete and confidentiality obligations under certain of Dalal’s compensation agreements with Wipro by joining’’ Cognizant.
According to Cognizant, the settlement was reached without admission of liability by either party. Its payment covered Dalal’s settlement payment to Wipro as well as the reimbursement of his legal fees.
It was in September last year that Cognizant named Dalal as its CFO a week after his resignation from Wipro. He subsequently joined the firm in December 2023.
In November, Wipro filed a lawsuit against Dalal seeking payment of compensation of ₹25.15 crore with interest of 18 per cent for allegedly violating a clause in his employment contract with the company.
Dalal had allegedly violated a non-compete clause in his contract that prevented him from joining any rival company for a period of 12 months.