Cognizant settles Wipro’s lawsuit against CFO
BENGALURU, INDIA — Tech giant Wipro and its former Chief Financial Officer (CFO) Jatin Dalal have resolved their nine-month legal dispute.
Dalal’s new employer, Cognizant Technology Solutions Corp, agreed to pay approximately $505,087 (₹4.2 crore) for the settlement and legal fees.
This settlement marks the second such resolution since Srinivas Pallia took over as Wipro’s CEO four months ago.
Background of the non-compete dispute
The conflict began when Wipro filed a lawsuit against Dalal and its other senior executives, alleging that he breached non-compete and confidentiality clauses by joining Cognizant immediately after resigning from Wipro in September 2023.
Wipro sought ₹25.1 crore ($3 million) in damages, claiming Dalal violated his employment contract, which restricted him from working with competitors for one year.
Legal proceedings and arbitration
In January 2024, the case was referred to arbitration by a Bengaluru civil court. Both parties appointed a sole arbitrator to resolve the matter.
Last July 2, Cognizant’s Compensation and Human Capital Committee approved the payment to Dalal, which included the settlement amount and reimbursement of his legal fees.
Cognizant’s filing with the U.S. Securities and Exchange Commission (SEC) stated that 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.
Dalal expressed relief over the resolution, stating, “I am grateful for my journey with Wipro, and I am pleased to have this matter behind me.”
Similar case: Mohammad Haque settlement
In a related development, Cognizant confirmed that a similar settlement had been reached regarding the lawsuit between Wipro and its former senior vice-president, Mohammad Haque.
Haque joined Cognizant in August 2023 after leaving Wipro in June 2023, leading to another non-compete clause breach allegation.
The resolution of these disputes highlights the complexities and challenges of enforcing non-compete agreements in the competitive IT sector.
As Wipro continues to navigate these legal challenges, the industry will closely watch how such cases influence future employment contracts and executive transitions.
