Cognizant Technology Solutions has announced a proposed settlement in a stockholder derivative action that would see the company receive $5.5 million from its insurers. The settlement, detailed in a stipulation filed in U.S. District Court for the District of New Jersey, resolves claims brought derivatively on behalf of Cognizant. Plaintiff’s counsel will seek court approval for attorneys’ fees and expenses of up to $1,830,000, representing approximately 33% of the settlement fund, along with a service award of up to $15,000 for the plaintiff. A settlement hearing is scheduled for September 14, 2026, before Judge Stacey D. Adams in Newark, New Jersey. Current Cognizant stockholders as of November 25, 2025, may object to the settlement by filing written objections with the court no later than August 31, 2026.
Cognizant Technology Solutions Corp Class ADerivative lawsuit settlement requires $5.5 million payment from insurers, with legal fees up to $1.83 million, indicating ongoing litigation costs and governance issues.