TCS fined by a US court USD 194 million for misappropriation of trade secrets

On June 14, 2024, Tata Consultancy Services (TCS), India’s largest IT services exporter, received an adverse judgement passed by the United States District Court, Northern District of Texas, Dallas Division. The court ruling came in a suit filed by Computer Sciences Corporation (CSC)/ DXC Technology Company (DXC) against the company, alleging misappropriation of its trade secrets.

The court ruled that the company is liable for a total of USD 194.2 million, which includes USD 56 million in compensatory damages and USD 112 million in exemplary damages. The Court also assessed that the company is liable for USD 25.8 million in prejudgment interest through June 13, 2024.

In a statement, TCS said, “The company believes that it has strong arguments against the judgement and is taking the necessary steps to protect its interest through review or appeal. The company believes that the judgement has no major adverse impact on its financials and operations.”