TCS Hit with $194M Fine by US Court Over Trade Secrets Misuse

A US court has ruled that Tata Consultancy Services (TCS) is liable for misappropriation of trade secrets, imposing a fine of approximately USD 194 million. TCS, in a regulatory filing, expressed its intention to challenge the decision. The case was initiated by Computer Sciences Corporation (CSC), now part of DXC Technology Company.

A US court has ruled that Tata Consultancy Services (TCS) is liable for misappropriating trade secrets and has imposed a penalty of about USD 194 million on the IT giant, according to a regulatory filing on Friday. TCS stated it has substantial arguments to counter the judgement and intends to take necessary actions for a review or appeal.

The judgement was given in a case filed by Computer Sciences Corporation (CSC), now merged with DXC Technology Company, in the United States District Court, Northern District of Texas, Dallas Division. The court ordered TCS to pay CSC USD 56,151,583 in compensatory damages and USD 112,303,166 in exemplary damages. Additionally, TCS has been ordered to pay USD 25,773,576.60 in prejudgment interest through June 13, 2024.

Furthermore, the court issued certain injunctions and other reliefs against TCS. Despite this, the company stated that the judgement would not significantly impact its financial health and operations.