A court in the United States has imposed a fine of over $194.2 million (around Rs 1,622 crore) on Tata Consultancy Services Ltd for alleged misappropriation of trade secrets.
In an exchange filing the IT services giant informed that TCS has received an adverse judgement passed by the district court, Northern District of Texas, Dallas Division.
In a suit filed by Computer Sciences Corporation (CSC), now DXC Technology Company (DXC), the court found TCS liable for misappropriation of trade secrets under the Defend Trade Secrets Act of 2016 (DTSA).
In an order passed on June 14, 2024, the court ordered that TCS is liable to CSC for $5,61,51,583 in compensatory damages and $11,23,03,166 in exemplary damages.
The Court also held that the company is liable for $2,57,73,576.6 in prejudgment interest through June 13, 2024, according to the exchange filing.
Computer Sciences Corporation became DXC Technology after the merger with HPE’s enterprise services business. The company in 2019 filed a suit against TCS alleging that the Indian IT services major hired 2,200 employees of Transamerica in 2018 and got access to the US company’s software and other proprietary information to build a rival life-insurance platform.
TCS in 2018 had won a 10-year order worth $2 billion from Transamerica Life Insurance for building a platform. CSC had licensed its software to Transamerica.
TCS in 2023 had also faced a fine of $210 million by a Texas court on a suit filed by DXC Technology in another trade-secrets case.
A jury in Texas federal court had found TCS guilty of misusing secret information about DXC’s software to create its own platform.
The US Supreme Court in 2023 had also upheld a fine of $140 million against Tata Consultancy Services.
Tags: Business, TCS
Keywords: TCS, Tata Consultancy Services, TCS Fine, TCS US court verdict
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