Indian Tech Stocks Lose Rs55,000 Crore on US Action Against Cognizant
Inspector General Anthony D'Esposito said the move follows a fraud probe into visa filings that could affect Indian outsourcing firms and U.S. employers.
- On Tuesday, the U.S. Department of Labour suspended permanent labour certification filings for Cognizant and Cloudera following an investigation into alleged visa fraud. Labour Department Inspector General Anthony D'Esposito announced the action.
- This suspension stems from a broader Trump administration campaign against visa fraud, executed in coordination with the White House Fraud Task Force. Officials allege companies submitted fraudulent applications, exploiting foreign workers and undercutting American workers' wages.
- "Threats to American workers will NOT be tolerated," D'Esposito stated while announcing the action. The department has issued multiple subpoenas to track leads in the visa fraud investigation.
- Cognizant received 3,510 approved H-1B visa petitions in fiscal year 2026 and now faces heightened scrutiny. It remains unclear if other major Indian IT services firms are currently under investigation.
- The action marks a significant escalation in federal efforts to regulate the Program Electronic Review Management process. As the Department of Labour continues tracking "facts, fraud and finances," the industry awaits further developments.
24 Articles
24 Articles
US halts Cognizants green-card filings amid Trumps visa fraud crackdown - The Tribune
The US Labour Department suspended Cognizant's permanent labour certification filings amid an alleged visa fraud investigation. The Trump administration is intensifying its scrutiny of employment-based immigration programs, impacting major IT service providers that rely on foreign workers.
Times of India
US suspends Cognizant green card filings
The action came a day after Cognizant announced plans to expand its American workforce. The company said it planned to hire 1,500 US college graduates and increase its Frontier Certified Engineer and Frontier Business Operator workforce to 15,000 people.
The US Department of Labor has suspended the PERM filings of Cognizant and Cloudera. An investigation is underway into alleged irregularities in the filings of both companies. The investigation also examines issues related to visa processing, fraud, and financial transactions.
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