Indian IT giant Tata Consultancy Services (TCS) announced on Friday that a US District Court has imposed a $194 million penalty on the company. In a regulatory filing, TCS stated, “Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform you that the Company has received an adverse judgement passed by the United States District Court, Northern District of Texas, Dallas Division. 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.”
The judgment relates to a case filed by DXC Technology Company, formerly known as Computer Sciences Corporation (CSC), alleging misappropriation of trade secrets by TCS. The order, dated June 14, 2024, holds TCS liable under the Defend Trade Secrets Act of 2016 (DTSA). The court ordered TCS to pay $56,151,583 in compensatory damages, $112,303,166 in exemplary damages, and $25,773,576.60 in prejudgment interest, totaling $194.2 million.
Despite the ruling, TCS asserted that it would not have a significant financial impact on the company’s operations and that it plans to take strong legal action to protect its interests. “The Company believes that it has strong arguments against the judgment and is taking necessary steps to protect its interests through review/appeal. The Company believes that the judgment has no major adverse impact on its financials and operations,” TCS said.
