Indian IT giant, Tata Consultancy Services (TCS) informed on Friday that a District Court in the United States has imposed a $194 million penalty on the company.
In a regulatory filing, the tech firm said, “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 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 intend to defend its position through review petition/appeal to the appropriate Court.”
The judgement was announced regarding a case filed by DXC Technology Company, formerly known as Computer Sciences Corporation (CSC), claiming misappropriation of trade secrets by the Indian IT firm. The decision was passed by the District Court in Dallas division in Texas.
As part of the order, dated June 14, 2024, the court said that the company remianed liable for misappropriation of trade secrets under the Defend Trade Secrets Act of 2016 (DTSA).
The District Court stated that the firm is liable to pay $56,151,583 in compensatory damages, along with $112,303,166 as part of exemplary damages. “The Court also assessed that the Company is liable for $25,773,576.60 in prejudgment interest through June 13, 2024,” the filing noted. This will bring the overall penalty to $194.2 million.
The firm, however, assured that the ruling would have no financial impact on the company’s workings and the IT major will also pursue strong legal action to protect its interests. “The Company believes that it has strong arguments against the Judgement and is taking necessary steps to protect its interest through review/appeal. The Company believes that the Judgement has no major adverse impact on its financials and operations,” the firm said.
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