Cognizant preliminarily approves $5.5M derivative settlement; insurers to fund payment

Cognizant disclosed a court‑preliminarily approved settlement that will provide $5.5 million to the company funded by defendants' insurers.Key Highlights:Original SEC Filing: COGNIZANT TECHNOLOGY SOLUTIONS CORP [ CTSH ] - 8-K - Jul. 10, 2026This is an AI-powered summary. It may contain inaccuracies…

Cognizant disclosed a court‑preliminarily approved settlement that will provide $5.5 million to the company funded by defendants' insurers.

Key Highlights:

Preliminary Approval: U.S. District Court (D.N.J.) entered an order preliminarily approving settlement in Palempalli derivative action.
Monetary Consideration: Defendants' insurers will pay $5.5 million to Cognizant as the Settlement Fund, net of court‑approved fees.
Fees & Expenses: Plaintiff's counsel will ask the court to approve up to $1.83 million (≈33% of fund) to cover attorneys' fees and expenses.
Settlement Hearing: Final approval hearing scheduled for September 14, 2026; objections due by August 31, 2026.
Releases and Dismissal: If approved, the Derivative Action will be dismissed with prejudice and mutual releases exchanged among settling parties.

Original SEC Filing:

This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.