By Jonathan Stempel and Sarah N. Lynch
NEW YORK (Reuters) โ 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 Bondiโs office, and reflected a โrecent assessmentโ of Trumpโs executive order pausing enforcement of the Foreign Corrupt Practices Act (โFCPAโ).
Last month, Farbiarz rejected a request by Habbaโs predecessor John Giordano to delay the case by 180 days, and scheduled an April 7 trial. The judge cited the defendantsโ 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 Trumpโs 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: โWe are grateful that we were able to convince DOJ of what we have long known: that this case never should have been brought.โ
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 โhorrible law,โ and when signing his executive order said ending enforcement would โmean a lot more business for America.โ
(Reporting by Jonathan Stempel in New York and Sarah N. Lynch in Washington, D.C.; Editing by Marguerita Choy)
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