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Summary Notice of Pendency and Proposed Settlement of Stockholder Derivative Action

CTSH
  • Cognizant Technology Solutions Corporation announced a proposed settlement for the stockholder derivative action Palempalli v. Patsalos-Fox, et al. (Case No. 2:21-cv-12025-EP-SDA) filed in the U.S. District Court for the District of New Jersey.
  • The settlement involves a cash payment of $5.5 million from the defendants' insurers to Cognizant, subject to the deduction of court-approved attorney fees & expenses.
  • Plaintiff's counsel requests court approval for attorneys' fees & expenses not to exceed $1,830,000, representing approximately 33% of the settlement fund.
  • A service award of up to $15,000 may be granted to the named plaintiff, Viswanatha Palempalli, from the approved fee & expense amount.
  • The case is a stockholder derivative action, not a class action, meaning there is no common fund for individual stockholder monetary claims.
  • A settlement hearing is scheduled for September 14, 2026, at 11:00 a.m. before Judge Stacey D. Adams in Newark, New Jersey, to determine final approval.
  • Eligible stockholders include those who held Cognizant common stock currently & as of November 25, 2025.
  • Stockholders wishing to object to the settlement terms must file a written notice with the court & serve counsel by August 31, 2026.
  • Failure to file a timely written objection waives the right to object or appeal regarding this proceeding.
  • The full Stipulation of Settlement & additional details are available on the "Investors" page of Cognizant's website.