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US court trims penalty on TCS to $420 mn in IP theft case

TCS said the order will not have any impact on second quarter financial results expected on October 12

Press Trust of India  |  New Delhi 

TCS, Tata Consultancy Services

IT major (TCS) on Sunday said a US court has more than halved the compensatory and punitive damages demanded from the company to $420 million in a lawsuit filed by Corporation.

The matter relates to a US grand jury order that slapped two Tata group and Tata America International Corp — with a $940 million fine in a trade secret lawsuit filed against them by Epic in April 2016.

said an opinion and order has been issued by the Western District Court of Wisconsin, in the suit filed by Corporation against the company.

"Partially granting motion, the court significantly reduced the compensatory and punitive damages of $940 million awarded by the July verdict in April 2016, to $420 million," said in a regulatory filing issued today.

The Mumbai-headquartered IT major said it has received a legal advice that the order and the reduced damages awarded are not supported by evidence presented during the trial and a strong appeal can be made to superior court to fully set aside the jury verdict.

Epic had accused TCS and Tata America International Corp, in a lawsuit filed in October, 2014 in US District Court in Madison which was amended in January and December 2015, of "brazenly stealing trade secrets, confidential information, documents and data" belonging to Epic.

The Wisconsin court in April 2016 had ruled the two Tata group to pay $240 million to for allegedly ripping off its software, besides $700 million as punitive damages.

"The company did not misuse or derive any benefit from Epic's documents and plans to defend its position vigorously before the trail judge as well as in appeal," TCS said in the filing.

TCS said the order will not have any impact on second quarter financial results expected on October 12.

As an organisation TCS remains committed to respecting and protecting proprietary information as well as its reputation," it said.

First Published: Mon, October 02 2017. 02:13 IST