The U.S. Department of Justice announced its intention to move forward with the trial of two former executives of Cognizant Technology Solutions, despite a directive from former President Donald Trump that paused foreign bribery enforcement. This directive, issued on February 10, 2025, initially put a halt to new enforcement actions and necessitated a review of current and past actions under the Foreign Corrupt Practices Act (FCPA). However, it will not delay the scheduled trial.
The trial, set to commence on March 3, revolves around allegations that the executives, including the former president and chief legal officer of Cognizant, authorized a $2 million bribe related to the construction of an office park in India. These charges were filed in 2019 under the FCPA, highlighting the Justice Department’s efforts to hold top executives accountable for corporate misconduct. The Bloomberg report emphasizes the significance of the trial as prosecutors aim to fulfill bipartisan pledges to enforce corporate accountability.
Defense attorneys from notable law firms Jones Day and Paul Weiss sought to have the case dismissed, arguing that the president’s directive should be grounds for dismissal. Despite these efforts, a federal judge in New Jersey was informed by prosecutors that the case would continue as planned.
This decision has wider implications for the numerous other FCPA investigations currently under review following Trump’s order. The order claimed that overenforcement of the FCPA harms U.S. companies by preventing them from engaging in practices common among their international competitors, thus creating an uneven playing field, as noted in a White House statement accompanying the directive.
The case, United States v. Coburn, proceeding in the District of New Jersey under case number 2:19-cr-00120, represents a notable test of the enforcement of compliance with international business regulations amidst evolving political directives.