BENGALURU, INDIA – Tech giant Wipro has resolved its nine-month legal dispute with former chief financial officer (CFO) Jatin Dalal.
Dalal’s new employer, Cognizant Technology Solutions Corp, has agreed to pay around $505,087 (₹4.2 crore) for the settlement and legal fees. This amount is a sixth of the $3 million (₹25.1 crore) that Wipro originally demanded in damages from Dalal.
Background of the legal dispute
The lawsuit was initiated by Wipro against Dalal and other senior executives, alleging breaches of non-compete and confidentiality clauses.
Dalal resigned from Wipro on September 21, 2023, with his last working day on September 30, 2023. Shortly after, he joined Cognizant as their new CFO.
Wipro claimed Dalal’s immediate move to Cognizant violated his employment contract, which restricted him from joining a competitor for one year.
Settlement details
In January 2024, the case was referred to arbitration by a Bengaluru civil court. Both parties agreed to appoint a sole arbitrator to mediate the matter.
On July 2, Cognizant’s Compensation and Human Capital Committee approved the payment covering the settlement amount and Dalal’s legal fees. The settlement was reached without any admission of liability by either party, as stated in Cognizant’s filing with the U.S. Securities and Exchange Commission (SEC).
Jatin Dalal expressed relief over the resolution, stating, “I am grateful for my journey with Wipro, and I am pleased to have this matter behind me.”
Second settlement under new CEO
This settlement marks the second lawsuit resolved within four months of Wipro’s new chief executive officer Srinivas Pallia taking charge. Cognizant has also reached a similar settlement between Wipro and its former senior vice president Mohammad Haque.
