TCS hit with $194.2 Million judgment in trade secrets case

TCS hit with $194.2 Million judgment in trade secrets case

TCS hit with $194.2 Million judgment in trade secrets case

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Tech Giant to Challenge Court Ruling in US

Tata Consultancy Services (TCS), India’s largest IT services exporter, faces a significant legal setback in the United States. The United States District Court for the Northern District of Texas, Dallas Division, has ruled against TCS in a case brought by Computer Sciences Corporation (CSC), now known as DXC Technology Company (DXC), alleging misappropriation of trade secrets.

In an official stock exchange filing on Friday, June 14, TCS disclosed, “We hereby inform you that the Company has received an adverse judgment passed by United States District Court, Northern District of Texas, Dallas Division.”

The court has held TCS liable for a total of $194.2 million. This sum comprises $56,151,583 in compensatory damages, $112,303,166 in exemplary damages, and $25,773,576.60 in prejudgment interest.

Additionally, the court has imposed various injunctions and other reliefs against TCS. “The court ordered that the company is liable to CSC for USD 56,151,583 in compensatory damages and USD 112,303,166 in exemplary damages. The court also assessed that the company is liable for USD 25,773,576.60 in prejudgment interest through June 13, 2024,” TCS reported.

Despite the substantial judgment, TCS remains resolute. The company plans to challenge the ruling, stating it has strong arguments to counter the court’s decision. “The company believes that it has strong arguments in the matter and intends to defend its position through review petition/appeal to the appropriate Court,” TCS asserted.

A spokesperson for TCS emphasized that the judgment will not severely impact the company’s financial health or operations. “TCS is taking the necessary steps to protect its interests and address the legal challenges presented by this ruling,” the spokesperson added.

Financial Impact and Future Actions

TCS has assured stakeholders that it will handle the situation with the necessary legal actions, suggesting an appeal or review petition as the next step. The company received the court order on June 14, 2024, and is currently evaluating its legal options to mitigate the impact of the judgment.