A joint stipulation was recently filed in the U.S. District Court for the District of New Jersey that moved for dismissal of the U.S. Securities and Exchange Commission’s case against Gordon Coburn and Steven Schwartz, two former executives of global IT services provider Cognizant Technology Solutions Corporation. According to the joint stipulation, which the Court approved on July 16, 2025, the SEC decided to dismiss the case “in the exercise of its discretion and as a policy matter.” All parties in the case stipulated that the case would be dismissed with prejudice and “without costs or fees to either party.”
In 2019, the SEC charged Coburn (Cognizant’s former president), Schwartz (Cognizant’s former chief legal officer), and Cognizant with various FCPA violations. The former executives were accused of approving a $2 million bribe payment to a government official in India, while Cognizant was accused of paying more than $3.6 million in bribe payments, including the $2 million payment to the government official in India to obtain government permits to build a 2.7 million square foot campus in India. Cognizant was charged by the SEC with violating the anti-bribery, books and records, and internal controls provisions of the FCPA and agreed to pay approximately $25 million to resolve the matter without admitting or denying the SEC’s allegations. At the same time, the DOJ declined to bring an enforcement action against Cognizant in exchange for its agreement to pay approximately $19.4 million in disgorgement to the DOJ (reduced by the amount paid to the SEC) and Cognizant’s continuing cooperation in the DOJ’s related investigations and prosecutions.
With respect to Coburn and Schwartz, the SEC charged them with anti-bribery, books and records, and internal controls violations. In addition, the DOJ filed a twelve count indictment, accusing Schwartz and Coburn with conspiring to violate the FCPA, as well as substantive anti-bribery, books and records, and internal controls violations. The DOJ case against Coburn and Schwartz proceeded, with the SEC enforcement action paused.
In April 2025, the DOJ dropped the charges against Coburn and Schwartz. At that time, the SEC moved to restore the civil FCPA case against Coburn and Schwartz, which was inactive, and to stay the case while the parties explored a possible resolution. Following negotiations, the SEC charges were voluntarily dismissed on July 16, 2025.
Joint Stipulation and Order to Dismiss, and Releases | Order Granting Dismissal | DOJ Declination for Cognizant | SEC Litigation Release – February 15, 2019