Coforge received a $11-million notice from a client in the North American region for an alleged data breach, the information technology company said on August 8.
“At this time, the company intends to refuse the client’s demands regarding the arbitration claim resolutions on the basis that, in the company’s view, such amounts are not reasonably subject to indemnification,” the company said in an exchange filing.
Coforge said the quantum of claims or the expected financial implications for the company of the class-action suit "remain unascertained" at this stage.
The company said it is not yet a party to any litigation or arbitration proceeding and there is no tribunal, court, or agency where any litigation or arbitration proceeding has been filed against the company.
Irrespective of the notice, Coforge continues to provide services to the said client on a regular basis with no meaningful impact on the revenues received from such client.
For the period ended June 30, 2024, the company's net sales increased by 6 percent to Rs 1,209 crore from Rs 1,140 crore. Net profit was down over 61 percent to Rs 81 crore form the year-ago period.
At 1.02 om, the Coforge stock was trading at Rs 5,874.35 on the National Stock Exchange, down 2.37 percent from the previous close.
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