NEW YORK, April 3 (Reuters) - A federal judge agreed to
let the U.S. Department of Justice end its prosecution of two
former Cognizant Technology Solutions executives, the
first time the department publicly abandoned a foreign bribery
case since President Donald Trump halted enforcement of a key
anti-bribery law.
U.S. District Judge Michael Farbiarz in Newark, New Jersey
on Thursday dismissed the case against Gordon Coburn and Steven
Schwartz with prejudice, meaning it cannot be brought again.
The dismissal came two days after Alina Habba, the acting
U.S. Attorney in New Jersey, said the case should be dropped.
Habba, who also represented Trump in private practice, said
her request followed consultation with Attorney General Pam
Bondi's office, and reflected a "recent assessment" of Trump's
executive order pausing enforcement of the Foreign Corrupt
Practices Act ("FCPA").
Last month, Farbiarz rejected a request by Habba's
predecessor John Giordano to delay the case by 180 days, and
scheduled an April 7 trial. The judge cited the defendants'
right to a speedy trial in the six-year-old case.
Cognizant is a Teaneck, New Jersey-based information
technology and outsourcing company.
U.S. authorities charged Coburn and Schwartz in February
2019, during Trump's first White House term, with authorizing a
$2 million bribe to an Indian official for help obtaining a
construction permit for a new Cognizant office campus in
Chennai.
Coburn and Schwartz pleaded not guilty. Cognizant agreed to
pay $25.2 million to settle a related Securities and Exchange
Commission civil case, which included an accusation the company
authorized two additional bribes totaling $1.64 million.
James Loonam, a lawyer for Coburn, in a statement said: "We
are grateful that we were able to convince DOJ of what we have
long known: that this case never should have been brought."
A lawyer for Schwartz did not immediately respond to a
request for comment.
Enacted in 1977, the FCPA prohibits companies that operate
in the United States from bribing foreign officials.
Trump has called the FCPA a "horrible law," and when signing
his executive order said ending enforcement would "mean a lot
more business for America."