Cognizant engaged in a pattern of discriminatory conduct toward non-Indian workers and should pay punitive damages to compensate employees who suffered harm, a US jury found. The verdict came after the IT firm failed to persuade a Los Angeles federal judge last month to toss a 2017 job bias class-action lawsuit when a previous trial ended with a deadlocked jury.

A Cognizant spokesperson said the company is disappointed with the verdict and plans to appeal.

“We provide equal employment opportunities for all employees and have built a diverse and inclusive workplace that promotes a culture of belonging in which all employees feel valued, are engaged and have the opportunity to develop and succeed,” the company said. 

Bloomberg News reported in July that the Teaneck, New Jersey-based company was among a handful of outsourcing firms exploiting loopholes in the H1-B visa lottery system. The company defended its practices, saying it’s fully compliant with US laws on the visa process. Cognizant also said that in recent years it has increased its US hiring and reduced its dependence on the H1-B program.

The Los Angeles case began after three employees who identify as “Caucasian” claimed in a lawsuit that Cognizant made a practice of giving preference to South Asians in employment decisions. The plaintiffs alleged they were terminated after being “benched” with no work for five weeks and then replaced by “visa-ready” workers from India set to be deployed to US projects and assignments.

Cognizant had the highest number of H-1B visas of any US employer from 2013 to 2019, according to Citizenship and Immigration Services.

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