The court has ordered the company to pay $56 million as compensatory damages and $112 million as exemplary damages.
A US court has ordered the giant IT company Tata Consultancy Services to pay a penalty of $194 million. According to exchange filings, this decision has been given in the case of DXC Technology Company (formerly CSC) for misuse of trade secrets. The Dallas court has ordered the company to pay $56 million as compensatory damages and $112 million as exemplary damages.
The company was accused of this
The court also assessed that the company has to pay pre-judgement interest of $25 million by June 13. That is, this decision had come a long time ago and the company had filed an appeal against it in the court. During this time, the company will also have to pay interest on the amount of damages.
According to the court order, TCS will have to pay for misuse of trade secrets under the Defend Trade Secrets Act, 2016.
TCS also said in its filing that it believes that the company has strong arguments against the decision and is protecting its interests through review or appeal. According to it, however, the decision will not have any major impact on its finances and operations.
The fine was paid to TCS in 2022
TCS was paid a penalty of $140 million in the Epic Systems case in 2022. The company had claimed that TCS had stolen its intellectual property after implementing an agreement to use Epic’s healthcare software. In November, the jury found that TCS must pay a penalty of $210 million in the case filed by DXC.
At that time, TCS had said that the court would decide on the order in the case. In the suit filed in 2019, DXC had alleged that TCS had gained access to its software source code and created its own competing insurance platform.
The US-based company was accused of doing this after gaining access to the source code through 2,200 Transamerica employees in 2018.
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