Cognizant sued by Syntel unit

Cognizant Technology and TriZetto have been sued by a unit of competitor Syntel for allegedly interfering with a contract and misappropriating confidential information. TriZetto is a health care information technology services provider that Cognizant recently acquired.

In a lawsuit filed on Monday in US District Court in Manhattan, Syntel Sterling sought $3.4 million from the IT provider, TriZetto, and $6.1 billion in punitive damages based on Cognizant's net worth.

Cognizant acquired TriZetto last year for $2.7 billion from London-based private equity firm Apax Partners LLP. In November, the company saidit had completed the TriZetto acquisition and that the combination would enable healthcare organizations to increase efficiency. Syntel said in its lawsuit that because of the acquisition it terminated an existing contract it had with TriZetto, and that as a result it was entitled to "transition rebates" of $3.4 million. TriZetto has refused to pay the rebates, the lawsuit says.

"Cognizant and TriZetto are focused on helping our healthcare clients deliver improved quality of care and superior health outcomes. We believe the allegations made by Syntel are without merit and will vigorously defend against them," a Cognizant spokerperson said.