Cognizant Shares Fall on Investigation and Departure of President
Shareholders were quick to exit their investments Friday on word of a corruption probe.
Shareholders of Cognizant Technology (CTSH) - Get Report were quick to exit their investments Friday, following news that some of the payments that the consulting and outsourcing-services company made in India could have violated the U.S. Foreign Corrupt Practices Act. Shares were down on word of the investigation, which prompted the sudden departure of the firm's president and former CFO Gordon Coburn. And according to analysts with Jefferies, shares were also pressured because Cognizant did not reiterate its third quarter or 2016 earnings guidance in Friday's filing. Shares of Cognizant are now down about 20% so far in 2016.
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