Cognizant Must Face Investor Suit on India Bribery Allegations

Cognizant Technology Solutions Corp. lost its bid to shut down a would-be class suit in New Jersey federal district court accusing it of misleading investors about an alleged bribery scheme.

The multinational IT services firm’s investors sufficiently alleged that Cognizant touted the benefits of special permits allowing some of its Indian facilities to take advantage of tax breaks and relaxed labor regulations without disclosing the bribes necessary to secure the permits, the U.S. District Court for the District of New Jersey said.

Cognizant argued that allegations based on government investigations “debunked” the “entire case” because those investigations dealt with ...