Staggering 940 Million Dollar Penalty on Tata Group for Epic Rip-off

TCS, however, claimed that there was no IP infringement and that it would appeal against the ruling.

Published: 17th April 2016 03:39 AM  |   Last Updated: 17th April 2016 06:50 AM   |  A+A-

CHENNAI:  A US Grand Jury has slapped a $940 million (`6,265.18 crore) fine in a trade secret lawsuit on two Tata Group firms — Tata Consultancy Services (TCS) and Tata America International Corp.

TCS, however, claimed that there was no IP infringement and that it would appeal against the ruling in higher courts and “defend its position vigorously”.

The verdict was delivered by a US Federal Court Grand Jury in Wisconsin regarding a lawsuit filed in October 2014 by US healthcare software firm Epic Systems. The verdict also comes in the wake of discrimination on Indian IT firms in H-1B and L-1 visa fee.

Epic had accused TCS of “brazenly stealing the trade secrets, confidential information, documents and data”, while consulting for its customer Kaiser Permanente. The jury has asked both companies to pay $240 million  (`1,599.62 crore) to Epic, along with $700 million (`4,665.56 crore) in punitive damages.

TCS, India’s largest IT services player, has firmly denied  the charge. “TCS did not misuse or benefit from any of the said  information for development of its own hospital management system ‘Med Mantra’, which was implemented for a large hospital chain in India in 2009,” it said.

It said that the verdict and the liability were unexpected. “While TCS respects the legal process, the jury’s verdict on liability and damages is unexpected as the company believes they are unsupported by the evidence presented during the trial,” it said, adding that  it appreciated the trial judge’s announcement from the Bench that he is almost certain he will reduce the damages award.

TCS said the development will not affect the company’s fourth quarter and FY2016 financial results. It is expected that the trial judgment will be entered in the case in the next six to eight weeks, following which the parties can file an appeal within 30 days.

Stay up to date on all the latest Business news with The New Indian Express App. Download now


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp