DXC Technology (formerly CSC) wins lawsuit against Tata Consultancy Services over trade secret misappropriation.
Key Points:
- TCS hit with $194.2 million penalty by US District Court.
- Lawsuit initiated by DXC Technology (formerly CSC).
- Breakdown of the penalty: $56.1 million in compensatory damages, $112.3 million in exemplary damages, and $25.8 million in prejudgment interest.
- TCS plans to appeal the ruling, asserting strong defense arguments.
In a significant legal blow, Tata Consultancy Services (TCS), India’s largest IT services exporter, announced on Friday, June 14, that it has been handed an adverse judgment by the United States District Court for the Northern District of Texas, Dallas Division.
The lawsuit, originally filed by Computer Sciences Corporation (CSC), now known as DXC Technology Company (DXC), accused TCS of misappropriating trade secrets. The court has ruled in favor of DXC, ordering TCS to pay a hefty sum of $194.2 million. This amount includes $56,151,583 in compensatory damages, $112,303,166 in exemplary damages, and $25,773,576.60 in prejudgment interest. Furthermore, the court has imposed additional injunctions and reliefs against TCS.
TCS disclosed in a stock exchange filing, "The company has received an adverse judgment passed by the United States District Court, Northern District of Texas, Dallas Division." The statement detailed the financial liabilities imposed on the company by the court.
Despite this substantial judgment, TCS is resolute in its stance, asserting that it possesses robust arguments to counter the court's decision. The company intends to file a review petition or appeal the ruling to the appropriate court, maintaining confidence in its legal position. The court order was received on June 14, 2024.
TCS assured stakeholders that this judgment would not significantly impact its financial stability or operational efficiency. The company emphasized that it is taking all necessary measures to safeguard its interests and address the legal challenges posed by this ruling.
In a firm statement, TCS reiterated, "The company believes that it has strong arguments in the matter and intends to defend its position through a review petition/appeal to the appropriate Court."
This high-profile case underscores the ongoing legal battles in the tech industry over intellectual property and trade secrets, highlighting the critical importance of safeguarding proprietary information.