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The U.S. Securities and Exchange Commission is seeking to dismiss its civil bribery case against two former executives from Cognizant Technology Solutions.

In a July 15 announcement, the SEC said the decision to drop its case against Gordon Coburn and Steven Schwartz was a discretionary, policy-based move and not based on the actual merits of the allegations.

In 2019, the two were accused of authorizing a $2 million bribe five years prior to an Indian official to secure a construction permit for a 2.7 million square-foot Cognizant office in Chennai. The information technology and outsourcing company is based in Teaneck.

The SEC charged them with violating anti-bribery provisions, as well as books and records and internal accounting controls under the Foreign Corrupt Practices Act. Meanwhile, the Department of Justice alleged conspiracy to violate the FCPA, falsifying company records and failing to implement proper internal controls.

FCPA executive order

The SEC’s move follows the DOJ’s decision in April to drop its criminal charges against Coburn and Schwartz. The dismissal was entered without prejudice and approved by Judge Michael Farbiarz in Newark federal court, Bloomberg reported.

At the time, it was the first instance in which the agency had publicly abandoned a foreign-bribery prosecution, since President Donald Trump issued an executive order pausing FCPA enforcement for 180 days.

Issued Feb. 10, Trump framed the executive order as a way to boost the competitiveness of U.S. business. It also prompted a revaluation of existing cases.

Coburn and Schwartz left the company during the fall of 2016. They have denied any wrongdoing. James Loonam, a Jones Day attorney representing Coburn, could not be immediately reached.

Lawrence Lustberg, a Gibbons PC attorney representing Schwartz, referred NJBIZ to a spokesperson for his client. Schwartz’s media representative declined to comment.

In 2019, Cognizant agreed to settle a parallel civil corruption lawsuit brought by the SEC for $25 million. That case includes an accusation that the company authorized two additional bribes totaling $1.64 million.