Cognizant Technology Solutions Corporation has recently reported the resolution of a lawsuit filed by Wipro Ltd. against its former Chief Financial Officer, Jatin Dalal.
The settlement, which was detailed in a July 2, 2024, SEC filing, involves a payment of $505,087. This amount covers both the settlement itself and the legal expenses related to the case.
Background of the Lawsuit
In November, Wipro filed a lawsuit against Jatin Dalal, alleging that he violated a non-compete clause by joining rival Cognizant within 12 months of leaving Wipro.
On receiving the legal notice, Jatin requested arbitration, and the matter was referred to the Bengaluru City Civil Court.
It is important to note that, former Wipro Senior Vice President, Mohammad Haque, also had a lawsuit against Wipro, which has been settled as well.
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Violation of Non-Compete Clause
Wipro had claimed that Jatin Dalal violated the non-compete clause by joining Cognizant shortly after leaving Wipro. The lawsuit was centered around Dalal’s transition to a competitor (Cognizant) within a restricted timeframe.
Wipro’s Lawsuit – Confidential Settlement
As per media reports, Cognizant has paid $505,087 to Dalal to resolve the dispute. The settlement has been reached without any admission of liability by either party. The terms of the settlement remain confidential.
Safeguarding Rights
Both Jatin Dalal and Wipro’s Saurabh Govil have expressed satisfaction with the confidential settlement.
Saurabh Govil, Chief Human Resource Officer (CHRO) at Wipro, stated that the company is glad the issue has been resolved, safeguarding their contractual rights.
Moving Forward
Jatin Dalal was reported expressing gratitude for his journey with Wipro and looks forward to continuing to drive Cognizant’s growth agenda. He aims to deliver value to clients, employees, and shareholders.
Wrapping Up!
The settlement underscores the importance of respecting non-compete agreements and contractual obligations. Both companies are now focusing on their respective paths without further legal entanglements.
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