#USA #Teaneck #Stockholder Rights #Derivative Action #Cognizant Technologies

Cognizant Completes Proposed Settlement of Derivative Action

In a notable development, Cognizant Technology Solutions Corporation (NASDAQ: CTSH), headquartered in Teaneck, New Jersey, has announced a proposed settlement regarding a stockholder derivative litigation. The case, filed under the U.S. District Court for the District of New Jersey, primarily addresses claims made on behalf of the company and involves key defendants from within its management.

Important Information for Cognizant Stockholders

This notice is aimed at all current stockholders of Cognizant as of November 25, 2025, and is crucial for understanding the implications of the settlement on their rights. It is important to note that this derivative action does not constitute a class action, meaning there is no common fund available for monetary claims related to the settlement.

Stockholders are not mandated to take any specific actions unless they wish to object to the proposed settlement terms, which includes the attorneys' fees or any service award stipulated in the agreement. If stockholders are satisfied with the settlement, no further action is required on their part.

Overview of the Settlement Terms

The stipulation of settlement, finalized on November 25, 2025, outlines a key financial component in which the defendants' insurers have agreed to pay Cognizant a total of $5.5 million, which will be classified as the Settlement Fund. This amount is subject to court approval regarding the fees and expenses associated with this litigation. Legal representatives of the plaintiff have indicated their intention to request attorney fees not exciding $1,830,000 (approximately 33% of the Settlement Fund), alongside a potential service award of up to $15,000 for the plaintiff.

This settlement aims to confer substantial benefits to Cognizant, and the legal team’s efforts in bringing this action to conclusion have been recognized as pivotal to this resolution. The complete details of the settlement agreement are available on the investors' section of Cognizant's official website.

Key Dates and Hearing Information

A significant date to remember is September 14, 2026, when a hearing will take place before the Honorable Stacey D. Adams, at the courthouse in Newark, New Jersey. This hearing will serve to determine the approval of the proposed settlement. Stockholders have the option to attend this meeting and voice any concerns or objections they may have.

Those wishing to participate in the hearing must file a written notice of objection with the court by August 31, 2026, providing essential details including personal information, proof of stock ownership, and specific objections they wish to raise.

It is crucial for stockholders who may wish to object to prepare and submit their notices in the specified format, including any supporting documents, to be heard during the hearing.

Inquiries and Further Information

For any inquiries related to this notification, stockholders can direct their questions to the plaintiff's counsel. However, they are advised not to contact the court or the defendants directly regarding this notice.

As Cognizant continues to move forward in this matter, it remains essential for stockholders to stay informed of both the developments related to this litigation and the broader impacts on the company's performance and governance. Ensuring an understanding of one's rights and the implications of the settlement will better equip investors to navigate this ongoing process effectively.