New Delhi: In a significant legal development, Tata Consultancy Services (TCS), a prominent figure in India’s IT sector, has been ordered by a US district court in Dallas to pay a hefty fine totaling $194.2 million. The fine comprises over $56 million in compensatory damages and approximately $112 million in punitive damages.
The case revolves around allegations of trade secret misuse leveled against TCS by DXC Technology Company (formerly known as Computer Science Corporation). Adding to the financial burden, TCS is also mandated to pay pre-judgment interest amounting to $25 million by June 13.
Despite the ruling, TCS remains resolute in its stance, expressing intentions to contest the verdict in the appellate court. The company has indicated potential plans to file a review petition to present its arguments against the decision. TCS received the court’s order on June 14, 2024.
TCS has reassured stakeholders that this legal predicament will not adversely affect its financial health. As India’s largest IT company by market capitalization, TCS’s assertion contrasts with economic experts’ opinions that such a substantial fine could represent a significant financial blow.
The unfolding of this legal battle is poised to be closely monitored by industry observers and market analysts alike.
