June 18, 2024
Tata Consultancy Companies was ordered by a US federal choose in Texas to pay $194.2 million after discovering TCS was answerable for willful and malicious commerce secret misappropriation, based on a court docket submitting.
“The corporate believes that it has sturdy arguments in opposition to the judgement and is taking needed steps to guard its curiosity by way of evaluate/attraction,” TCS mentioned in a regulatory submitting.
TCS additionally famous within the submitting that the judgement has no main opposed impression on its financials and operation.
The corporate was sued by Laptop Sciences Company alleging misappropriation of commerce secrets and techniques. Laptop Science later merged with HP Enterprise in 2017 to turn out to be DXC Expertise.
The quantity consists of $56 million in compensatory damages and $112.3 million in punitive damages.
Additionally, the court docket mentioned TCS is answerable for $25.8 million in prejudgment curiosity by way of June 13. TCS is answerable for post-judgement curiosity at an annual charge of 4.824% ranging from the date of entry of the judgement. It’s additionally answerable for attorneys’ charges.
In accordance with court docket data, TCS was offering upkeep companies to the Transamerica insurance coverage firm for CSC’s Vantage and CyberLife software program merchandise, that are used to manage and course of annuities and life insurance coverage insurance policies. TCS later bid in opposition to CSC with the goal of switching Transamerica to TCS’ competing BaNCS platform and, after successful the bid, employed greater than 2,200 individuals who had been previously employed by Transamerica, together with those that maintained Vantage and CyberLife.
“TCS improperly acquired the commerce secrets and techniques in 2017 as a part of its due diligence course of to develop a bid to displace CSC at Transamerica and acquire a $2.6 billion contract,” based on court docket data.
“We’re happy with the court docket’s ruling and really feel vindicated by this consequence,” DXC mentioned in an emailed assertion to SIA. “DXC prides itself on being a trusted world model for its prospects and on doing enterprise responsibly. We plan to implement the ruling to the fullest extent and to make sure DXC’s mental property is protected.”
SIA has reached out to TCS.
TCS was concerned in a separate case involving commerce secrets and techniques at Epic Techniques.