TCS told to pay $210 million to DXC Technology in another trade-secret case in US


Representative image

Representative image

Tata Consultancy Services (TCS) has been ordered to pay $210 million to DXC Technology by a Texas court in another trade-secret case blow barely a week after the US Supreme Court confirmed a penalty of $140 million against the Indian IT services major.

The case was filed by Computer Sciences Corporation (CSC), which became DXC Technology after a merger with HPE’s enterprise services business.

A jury in Dallas, Texas federal court, found TCS guilty of misusing confidential information about DXC’s Vantage-One and CyberLife software for managing life insurance and annuity policies to create its own platform.

“TCS respectfully disagrees with the jury’s advisory verdict,” a TCS spokesperson said in a statement, denying the charges.

“The matter will now be decided by the court, which has ordered further briefing from the parties. We plan to continue to litigate this ongoing case. We will have no further comment as the case remains pending,” the spokesperson said.

The jury had earlier said TCS owed DXC $70 million for misappropriating its trade secrets and an additional $140 million as its misuse was “willful and malicious.”

The case was filed by CSC in 2019, claiming that TCS hired 2,200 employees of Transamerica in 2018, through whom it got access to CSC’s software, knowledge of its source code and other proprietary information to build a competing life-insurance platform.

CSC had licensed its software to Transamerica.

TCS had bagged a 10-year $2-billion deal with Transamerica Life Insurance in 2018. The deal was cancelled earlier this year, citing challenging market environment for the insurance company as it looked to tighten tech spending.

Last week, TCS said it would take a hit of $125 million in Q3 earnings over a similar lawsuit by Epic Systems. The US Supreme Court upheld a fine of $140 million against TCS for stealing its intellectual properties to develop its own offering.


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