Cognizant Technology Solutions Corp. reported that a federal court has preliminarily approved a proposed settlement of a stockholder derivative lawsuit involving the company and certain individual defendants. The action disclosed in the Form 8-K occurred on June 30, 2026, when the United States District Court for the District of New Jersey entered a preliminary approval order in the case captioned *Viswanatha Palempalli v. Michael Pastalos-Fox, et al.*, No. 2:21-cv-12025-EP-SDA. The case is described as a putative stockholder derivative action, meaning it was brought by a stockholder on behalf of the company rather than as a direct claim for individual damages. Under the court’s preliminary approval order, Cognizant is required to notify its stockholders of the proposed settlement. The company is doing so through a Long-Form Notice of Pendency and Proposed Settlement of Stockholder Derivative Action and a Stipulation and Agreement of Settlement, which were included as Exhibits 99.1 and 99.2 to the filing. Cognizant also said those documents are available through a link on the “Investors” page of its website. The filing was made under Item 7.01, Regulation FD Disclosure, and Item 9.01, Financial Statements and Exhibits. Cognizant stated that the disclosure and the two settlement-related exhibits are being furnished, not filed, for purposes of Section 18 of the Securities Exchange Act of 1934, and will not be incorporated into other securities filings unless specifically referenced. The filing does not report any purchase or sale of Cognizant securities, insider transaction, stock option exercise, equity grant, share count, price, vesting schedule, or transaction code. Its significance is instead litigation-related: it informs stockholders that a court has taken the first step toward approving a derivative-action settlement and that stockholders may review the formal notice and settlement stipulation before any final approval process proceeds. The report was signed July 10, 2026, by John Kim, Cognizant’s Chief Legal Officer, Chief Administrative Officer and Corporate Secretary.
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Cognizant (CTSH) stock price, chart, and key data
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Stock detail
Cognizant
CTSH · XNAS
-$4.91 (-10.94%) past day
$39.99
After hours $43.42 (+8.58%)
Key metrics
Financials
Quarterly revenue, profitability, and balance-sheet snapshot
Dividend
Past Dividend Performance
$0.31
$0.33
$0.33
Annual Dividend Yield
3.30%
Dividend
$0.33 / Stock
Frequency
Quarterly Payment
Day range
$42.92 - $45.24
Close price
$43.63
Market cap
$21.1B
P/E ratio
8.69
About the company
Cognizant Technology Solutions
Cognizant Technology Solutions is a multinational IT services provider that offers a range of consulting and business process outsourcing services. Originally founded in India, the company is headquartered in the US and serves enterprise customers spanning the financial services, healthcare, and resources industries. With most of its workforce located in India, Cognizant leverages a global delivery model that helps clients outsource their IT needs to offshore labor.
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