TCS Faces $194 Million Damages in Trade Secrets Dispute

Tata Consultancy Services (TCS) faces an 'adverse ruling' from the US Court of Appeals in a trade secrets dispute with Computer Sciences Corporation (CSC), now merged with DXC Technology. The court upheld a previous ruling imposing $194 million in damages but vacated a related injunction for reassessment.

Tata Consultancy Services (TCS) has encountered a setback after the US Court of Appeals issued an 'adverse ruling' concerning a trade secrets dispute. The legal matter involves the Indian IT giant and Computer Sciences Corporation (CSC), now merged with DXC Technology Company (DXC).

The recent ruling upheld a previous District Court decision, imposing damages amounting to approximately $194 million against TCS. However, the Appeals Court vacated a previously granted injunction, opting to have the United States District Court, Northern District of Texas, reassess the order.

TCS stated its intent to explore legal options, including potential review and appeal, as it aims to defend its position. The company will make necessary financial provisions in accordance with relevant accounting standards, as they confront the misappropriation of trade secrets allegations levied against them last June.

(With inputs from agencies.)