US court levies $194 mn penal charges on TCS

Spread the love

A US court recently ruled against India’s largest IT services exporter,Tata Consultancy Services (TCS) in a trade secrets misappropriation case. This significant penalty arises from a case where TCS was found guilty of unlawfully accessing and using proprietary information belonging to another company.

A court in the United States found TCS liable for misappropriating trade secrets from an unnamed company, likely Computer Sciences Corporation (CSC) which has since merged with DXC Technology. The lawsuit, filed five years ago, alleged that TCS stole CSC’s trade secrets.

TCS must pay around $194 million, which breaks down into compensatory damages, exemplary damages, and prejudgment interest. TCS maintains they have strong arguments against the judgement and plan to appeal the decision.

In a stock exchange filing, Tata Consultancy Services (TCS) stated, “…we hereby inform you that the company has received an adverse judgment passed by the United States District Court, Northern District of Texas, Dallas Division, details of which are provided in Annexure A. 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 indicates that TCS plans to challenge the $194 million penalty imposed for the misappropriation of trade secrets by seeking a review or appealing the decision in a higher court, asserting their confidence in their legal standing and arguments.

The court’s decision underscores the serious legal and financial repercussions that can result from the misappropriation of trade secrets and emphasizes the importance of maintaining ethical business practices and protecting intellectual property rights.

The United States District Court has ruled that Tata Consultancy Services (TCS) is liable for a total of $194.2 million in a case involving the misappropriation of trade secrets. This amount includes:

  • $56,151,583 in compensatory damages
  • $112,303,166 in exemplary damages
  • $25,773,576.60 in prejudgment interest through June 13, 2024

Additionally, the court has imposed certain injunctions and other reliefs against the company. TCS disclosed this information in a stock exchange filing and stated that they intend to defend their position through a review petition or appeal to the appropriate court, as they believe they have strong arguments in the matter.

Related posts

Leave a Comment

67 + = 75