US Court Orders Sterlite Technologies to Pay $96.5M for Trade Secret Violations

An American court has ordered Sterlite Technologies' US arm to pay $96.5 million in damages to Prysmian for trade secret violations. Additionally, a $200,000 penalty has been imposed on Stephen Szymanski, the executive vice president of STI for misappropriation of trade secrets. STI plans to appeal against the judgment.

An American court has ordered Vedanta Group-backed Sterlite Technologies' overseas arm to pay USD 96.5 million, approximately Rs 810 crore, in damages to US-based Prysmian for violating trade secrets norms, as revealed in a regulatory filing and plaintiff's statement.

Moreover, the court has imposed a USD 200,000 penalty on Stephen Szymanski, the Executive Vice President for the Americas Region at Sterlite Technologies Inc (STI), for misappropriating Prysmian's trade secrets.

STI, a subsidiary of Sterlite Technologies (STL), has challenged the verdict and may pursue an appeal. Prysmian announced that a South Carolina jury ruled in its favor after a three-week trial on August 9. The jury concluded that Sterlite unjustly benefited by taking Prysmian's trade secrets and awarded USD 96.5 million in damages. Additionally, Szymanski was found to have personally benefited by misusing Prysmian's trade secrets and received a USD 200,000 penalty.

According to STL's regulatory filing on August 10, STL itself is not a party to the dispute and faces no direct claims. ''STI believes the judgement is not supported by the testimony and evidence presented at trial and intends to vigorously pursue all available post-trial remedies, including an appeal,'' STL stated. This development follows STL's report of a consolidated loss of Rs 48 crore and a 20% decline in revenue to Rs 1,218 crore for the quarter ending June 30, 2024.

(With inputs from agencies.)