Tata Consultancy Services Limited (TCS), an Indian multinational IT company and one of the largest IT services exporter worldwide received an adverse judgment in a case from the United States District Division.
The services company disclosed the information in its Stock Exchange Filing published on Friday, June 14. “Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, 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 filing read.
The United States District Court, Northern District of Texas, Dallas Division found the company guilty of misappropriation of trade secrets under the Defend Trade Secret Act of 2016.
Suit against TCS
The lawsuit was filed by Computer Sciences Corporation (CSC), now merged with DXC Technology Company, against the company, alleging misappropriation of their trade secrets. The court ordered that TCS is liable to CSC for $56,151,583 in compensatory damages and $112,303,166 in exemplary damages. The company also has to pay $25,773,576.60 in prejudgment interest through June 13.
Additionally, the court passed certain injunctions and other reliefs against the Company. However, the Company maintained that it has strong arguments against the judgment and is taking necessary steps to protect its interest through review/appeal.
Earlier in November last year, the same company had filed a suit against TCS for trade secret misappropriation. The judgment was given by a Texas court and fined a $210 million penalty to DXC Technology, a major TCS rival firm.
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Impact on Shares
TCS asserted that the judgment will have no major adverse impact on their financials and operations.
As of June 14, TCS shares price closed at Rs.3832.50. The share price was down by 1.19% based on previous price share of Rs.3831.65 .
