US court levies $194 mn penal charges on TCS for misappropriation of trade secrets

TCS, however, said it has strong arguments against the judgement and is taking necessary steps to protect its interest through review or appeal.

A US court has ruled that Tata Consultancy Services is liable for misappropriation of trade secrets and levied penal charges of around USD 194 million on the IT major, a regulatory filing said on Friday.

TCS, however, said it has strong arguments against the judgement and is taking necessary steps to protect its interest through review or appeal.

The order has been passed against the company in a case filed by Computer Sciences Corporation (CSC) -- now merged with DXC Technology Company (DXC) -- alleging misappropriation of its trade secrets before United States District Court, Northern District of Texas, Dallas Division.

"The court ordered that the company is liable to CSC for USD 56,151,583 in compensatory damages and USD 112,303,166 in exemplary damages. The court also assessed that the company is liable for USD 25,773,576.60 in prejudgment interest through June 13, 2024," the IT major said in the filing.

The court also passed certain injunctions and other reliefs against TCS, it added.

"The company believes that the Judgement has no major adverse impact on its financials and operations," the filing said.