TCS’ Six-Year Lawsuit Just Got More Expensive; What We Know So Far
TCS will take a $70 million charge after the US Supreme Court upheld a trade secrets ruling, raising its total exposure to $220 million.Summary
Tata Consultancy Services (TCS) has announced an additional $70 million one-time charge following the US Supreme Court's decision to uphold a trade secrets ruling in favor of DXC Technology. This brings the company's total financial exposure in the case to approximately $220 million. The charge, which will be recorded as an exceptional item in the first quarter of fiscal year 2027, covers damages, interest payments, and legal expenses. The legal battle originated in 2019 when Computer Sciences Corporation (the predecessor to DXC) alleged that TCS hired employees from Transamerica and used their knowledge to develop a competing platform. In 2023, a jury initially awarded $210 million, but a judge later reduced the amount to $168 million. Despite the significant charge, TCS remains profitable, reporting a net profit of 137.18 billion rupees ($1.45 billion) in the fourth quarter.
(Source：Times Now News)