US Court Orders TCS to Pay Fine of $194 Million for Misusing Trade Secrets
In a significant legal development, India's largest IT services exporter, Tata Consultancy Services (TCS), has been ordered by a United States court to pay a $194 million penalty for misappropriation of trade secrets. The judgment was delivered by the United States District Court for the Northern District of Texas, Dallas Division, marking a substantial setback for the renowned IT firm. The case, originally filed by Computer Sciences Corporation (CSC), now known as DXC Technology Company, accused TCS of misappropriating its trade secrets. Under the Defend Trade Secrets Act of 2016 (DTSA), the court found TCS liable for significant financial damages. The breakdown of the $194.2 million penalty includes $56,151,583 in compensatory damages, $112,303,166 in exemplary damages, and an additional $25,773,576.60 in prejudgment interest accrued through June 13, 2024. TCS disclosed the adverse judgment in a stock exchange filing, asserting that it received the court's decision o...
