Tata Consultancy Services (TCS), the biggest exporter of IT services from India, said on Friday that it has been ordered to pay a $194 million penalty by the United States District Court, Northern District of Texas, Dallas Division.
The company announced in a stock market filing that it had received an adverse judgment from the United States District Court for the Northern District of Texas, Dallas Division. Annexure A contains the specifics of the judgment. The business feels it has compelling evidence in this case, and it plans to support its position by filing an appeal with the relevant court or reviewing a petition.”
In its lawsuit against the business, Computer Sciences Corporation (CSC) (now known as DXC Technology Company) claimed that the latter had stolen its trade secrets.
The Defend Trade Secrets Act of 2016 (DTSA) holds the firm accountable for trade secret misappropriation, as per the conditions of the court orders.
The IT corporation is accountable for a total of $194.2 million, according to the United States District Court. This amount comprises $112,303,166 in exemplary damages and $56,151,583 in compensatory damages.
Additionally, the corporation was found to be liable by the court for $25,773,576.60 in prejudgment interest through June 13, 2024. TCS stated in the exchange filing that “the Court also granted certain injunctions and other reliefs against the Company.”
In spite of this significant finding, TCS stated that it has strong grounds to contest the ruling and plans to uphold its position in a review petition or an appeal to the appropriate court. On June 14, 2024, the firm received the court order.
TCS asserted that neither its operations nor its finances will be materially impacted by the ruling. The business is acting appropriately to protect its interests and deal with the legal issues raised by this decision.
“The corporation is pursuing the required actions to safeguard its interests through review and appeal because it feels it has compelling arguments against the ruling. According to the statement, “the company believes that the judgement has no major adverse impact on its financials and operations.”