U.S. Justice Department Drops Foreign Bribery Case Against Cognizant Executives

A federal judge has approved the U.S. Department of Justice's decision to drop a foreign bribery case against two former Cognizant Technology Solutions executives, marking the first such abandonment since the Trump administration paused enforcement of the Foreign Corrupt Practices Act (FCPA). U.S. District Judge Michael Farbiarz dismissed the charges against Gordon Coburn and Steven Schwartz, which involved a $2 million bribe to an Indian official for construction permits, with prejudice, meaning they cannot be revived. The dismissal follows a request from acting U.S. Attorney Alina Habba, who had ties to Trump, and reflects a reassessment of the executive order affecting the FCPA's enforcement. Both defendants maintained their innocence and had previously settled related civil charges with the SEC for $25.2 million. Legal representatives for the defendants expressed satisfaction with the ruling, asserting that the charges were unwarranted. This case illustrates the ongoing implications of political influence on legal proceedings related to foreign corruption.