US court upholds $194 mn damages against TCS in DXC trade secrets case

The Fifth Circuit Court of Appeals has upheld $194 million in damages against TCS in the DXC trade secrets case, even as it vacated an earlier injunction and sent it back for reassessment

Tata Consultancy Services (TCS), India’s largest information-technology services player, has said that a United States court on November 21 issued an adverse ruling against it in the case concerning DXC Technology Company (now Computer Sciences Corporation).

 

Last year, a US District Court had fined TCS $194 million on charges of misappropriating trade secrets. 

 

TCS in a regulatory filing on November 22 said: “We wish to intimate you that the United States Court of Appeals for the Fifth Circuit has issued an adverse ruling on November 21, 2025 (evening US time), in the above matter and confirmed the District Court decision on damages.”

 

The company further added: “However, the Court has vacated the previously granted injunction and directed the United States District Court, Northern District of Texas, Dallas Division, to reassess the injunction order basis direction of the Appeals Court.”

 

In the regulatory filing of June 14 last year, TCS had stated the court ruled that company was liable to pay $194.2 million, which includes compensatory damages, exemplary damages, and prejudgment interest.

 

The case was filed by Computer Sciences Corporation, which has since merged with DXC Technology Company. 

 

TCS in the regulatory filing stated it was evaluating options, including a review and appeal before the appropriate courts, and intended to defend its position. 

 

“Necessary provisions related to this matter will be duly made in the books of accounts and financial statements in accordance with applicable accounting standards.” said the firm.

 

About the case 

The case was filed in 2019 by Computer Sciences Corporation, which sued TCS for allegedly misusing its software after licensing it to a Transamerica subsidiary. The suit accused TCS of exploiting software access granted to Transamerica employees, who were transferred to TCS in a $2 billion deal. TCS created a rival insurance platform.