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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.