People who participated in the Cognizant Technology Solutions 401(k) Savings Plan at any time since December 2, 2014 would be paid automatically from plan records under the proposed $2.8 million Cognizant 401(k) ERISA class action settlement; there is no claim form to file. The settlement is awaiting preliminary approval in federal court in New Jersey, where the motion is set for decision on November 2, 2026.
Current Status
The settlement has not been approved yet, and there is nothing to file. Plaintiffs filed an unopposed motion for preliminary approval on September 29, 2026, in the U.S. District Court for the District of New Jersey, and the court set it for decision on the papers on November 2, 2026, before Magistrate Judge Stacey D. Adams. Payment would be automatic if the settlement wins final approval; no hearing date or payment date had been set as of October 1, 2026.Free settlement alerts
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What Changed Recently?
On September 29, 2026, plaintiffs asked the court to preliminarily approve a $2.8 million settlement, certify a settlement class, approve the notice plan and appoint Angeion Group as settlement administrator. Cognizant does not oppose the motion. The court had stayed all deadlines in June 2026 after the parties reported a settlement reached with the help of mediator Robert A. Meyer of JAMS.The lawsuit, filed in 2020 on behalf of the plan, claims the plan's fiduciaries breached their duty of prudence under the Employee Retirement Income Security Act (ERISA) by failing to monitor the plan's investments and costs. It alleges that the American Century target date funds in the plan underperformed their benchmarks and peers, that the plan kept MassMutual funds when lower-cost identical versions were available, and that the plan paid excessive recordkeeping and administrative fees. Cognizant and the other defendants deny the claims and deny any wrongdoing; the case went through several rounds of motions to dismiss before settling.
Who Qualifies?
The proposed settlement class is everyone, other than the defendants and their immediate family members, who was a participant in or beneficiary of the Cognizant Technology Solutions 401(k) Savings Plan at any time from December 2, 2014 through the date of the preliminary approval order. It also includes alternate payees under a qualified domestic relations order (QDRO) of a person who participated in the plan.Former employees are covered as long as they were in the plan during that period. The plan had at least 39,958 participants in 2018.
How Much Can You Get?
No per-person estimate has been published. The $2.8 million fund pays, subject to court approval, attorneys' fees of up to one-third of the fund ($933,333.33), up to $150,000 in litigation expenses, incentive awards of up to $10,000 for each of the five class representatives, up to $25,000 for an independent fiduciary who reviews the settlement for the plan, and administration costs. What remains is divided among class members pro rata under the proposed plan of allocation.Plaintiffs told the court that their damages estimate started in the tens of millions of dollars and was revised downward during mediation after considering the defendants' arguments, including that the target date funds outperformed in some years and that some claims faced standing and timing defenses.
What Proof or Notice ID Is Required?
None. The proposed plan of allocation relies on the records of Cognizant or the plan's recordkeeper and requires no claim to be filed. Keep your mailing address current with the plan, especially if you have left Cognizant, because notice goes to the last known address in plan records.What Is the Deadline?
There is no claim deadline because no claim is needed. If the court grants preliminary approval, its order will set the objection deadline and the final approval hearing, which plaintiffs propose holding at least 90 days after the order. Plaintiffs ask for certification under Rule 23(b)(1), and the proposed notice tells class members they cannot opt out; objecting is the way to be heard.How Do You Take Action?
Class members do not need to do anything to be paid. After preliminary approval, Angeion will mail a postcard notice, and email it where an address is available, to each class member at the last known address in the plan's records, and will launch a settlement website with the notice, the settlement agreement and the deadlines. This page will be updated with the link once it is live.What Happens Next?
The court is set to decide the preliminary approval motion on November 2, 2026, without a hearing unless it directs otherwise. If it grants the motion, notice goes out, an independent fiduciary reviews the settlement on behalf of the plan, and the court holds a final approval hearing. Payments come only after final approval and any appeals.Sources and Verification
• Milano v. Cognizant Technology Solutions U.S. Corporation, No. 2:20-cv-17793 (D.N.J.), court docket• Proposed Preliminary Approval Order, ECF No. 126-1 (September 29, 2026)
• Plaintiffs' Unopposed Motion for Preliminary Approval and Memorandum of Law, ECF Nos. 126 and 127, and supporting declaration, ECF No. 128 (September 29, 2026)
Questions
Do I need to file a claim for the Cognizant 401(k) settlement?
No. The proposed plan of allocation calculates each person's share from the records of Cognizant or the plan's recordkeeper, and requires no claim to be filed. Payment depends on the court approving the settlement.
I left Cognizant years ago. Am I still covered?
Yes, if you were a participant or beneficiary in the Cognizant Technology Solutions 401(k) Savings Plan at any time from December 2, 2014 through the date of the preliminary approval order. Former employees are part of the class, and the postcard notice goes to the last known address in the plan's records.
Can I opt out of the Cognizant 401(k) settlement?
Plaintiffs ask the court to certify the class under Federal Rule of Civil Procedure 23(b)(1), the type of class used for claims on behalf of a retirement plan, and the proposed notice tells class members they cannot opt out. Class members can object to the settlement in writing before the deadline the court sets.
How much will I get from the Cognizant 401(k) settlement?
No per-person estimate has been published. The $2.8 million fund first pays any attorneys' fees, expenses, incentive awards, independent fiduciary fees and administration costs the court approves, and the rest is divided pro rata under the plan of allocation. The plan had at least 39,958 participants in 2018 alone.
