IT services provider Cognizant Technology Solutions Corp said it was conducting an internal investigation into possible violations of the US Foreign Corrupt Practices Act and other laws, sending its shares tumbling on Friday.
The company also said that President Gordon Coburn had resigned and would be replaced by Rajeev Mehta, the head of IT services.
Cognizant, which gave no reason for Coburn's departure, could not be reached immediately to comment on whether it was linked to the probe.
Cognizant's shares fell as much as 15 per cent to $46.71 in early trading, their lowest in about two years after the company said it was investigating whether certain payments relating to its facilities in India were made improperly.
Cognizant is based in Teaneck, New Jersey but about three-quarters of its employees are in India. Cognizant said it had notified the United States Department of Justice and the United States Securities and Exchange Commission about the probe.
