TCS Hit With $194 Million Order In U.S. Trade-Secrets Case
Tata Consultancy Services (TCS) has suffered a significant legal setback in the United States after the Fifth Circuit Court of Appeals upheld a damages award of approximately US $194 million in a trade-secrets dispute with DXC Technology. The case was originally brought by Computer Sciences Corporation (CSC), now part of DXC, alleging misuse of its software and trade secrets by TCS. The court, however, vacated a prior injunction and sent one part of the case back to the lower court for review.
Background And Details
The legal battle dates back to 2019 when CSC accused TCS of gaining unauthorised access to its insurance-platform software after a deal with Transamerica employees who moved to TCS. The June 2024 district-court decision found TCS liable for US $56.15 million in compensatory damages, US $112.30 million in exemplary damages, and US $25.77 million in interest, bringing the total to around US $194 million. TCS has stated it will review all legal options and make appropriate provisions in its accounts.
Impact On TCS And Next Steps
This ruling is one of the most serious legal challenges faced by TCS in recent years. While the company has said the “impact on financials would not be material,” the reputational and operational implications are significant. TCS has confirmed it will explore appeal routes and, in the meantime, teams will assess how the vacated injunction affects its business operations in the U.S.
