How Can Tech Companies Navigate Non-Compete Lawsuits and Settlements Effectively?

Cognizant Settles Non-Compete Lawsuit with Wipro, Paying $505,087

Cognizant Technology Solutions announced on July 9 that it has reached a settlement in the non-compete lawsuit filed by Wipro against its Chief Financial Officer, Jatin Dalal. Cognizant paid $505,087 to Dalal to resolve the lawsuit and related arbitration.

The terms of the settlement are confidential and were reached without any admission of liability from either party. This settlement resolves all pending disputes between Mr. Dalal and Wipro, as stated in a filing by the Teaneck-based company.

Additionally, Cognizant confirmed that the lawsuit involving former Wipro senior vice president (SVP) Mohammad Haque has also been settled with Wipro.

Dalal expressed his gratitude for his journey with Wipro and his relief that the matter is now behind him. He looks forward to continuing to drive Cognizant’s growth and delivering value to clients, employees, and shareholders.

Saurabh Govil, Chief Human Resource Officer at Wipro, expressed satisfaction with the resolution, stating that it safeguards their contractual rights and wished Dalal well in his future endeavors.

The lawsuit, filed by Wipro in November, accused Dalal of violating the non-compete clause in his employment contract by joining Cognizant within 12 months of his last work date.

Dalal’s application to refer the matter to arbitration was accepted by the Bengaluru City Civil Court on January 3.

Reacting to the developments on January 12, Wipro emphasized that the company’s actions regarding contractual obligations were neither personal nor targeted, referring to the lawsuits filed against Dalal and Haque.

Mohammad Haque, who formerly led healthcare and medical devices for the Americas at

Wipro, joined Cognizant as its SVP and business unit head for life sciences before the end of his non-compete clause tenure on August 1, 2023. Wipro alleged in its complaint that Haque possessed seven files containing confidential information, which were flagged by its IT team as being sent from his personal Gmail account.