US court brings down penalty on TCS

Epic Systems had filed a lawsuit alleging that TCS stole data and trade secrets related to a contract that the IT firm secured from a Portland based hospital Kaiser Sunnyside Medical Centre.

Tata Consultancy Services. (Logo courtesy: WikiMedia Commons)

NEW DELHI:  A US Court of Appeals has reduced the punitive damages to be paid by Tata Consultancy Services to $140 million from $280 million with respect to a lawsuit that was filed by a software service firm Epic Systems. Epic had accused TCS of data and Intellectual Property Rights (IPR) theft in 2014. 

READ | US court held punitive damages award of USD 280 million in Epic Systems case as 'excessive': TCS

Epic Systems had filed a lawsuit alleging that TCS stole data and trade secrets related to a contract that the IT firm secured from a Portland based hospital Kaiser Sunnyside Medical Centre. However, the appeals court has held that the punitive damages award of $280 million is constitutionally excessive and directed the Trial Court to reassess the punitive damages.

TCS said in an exchange filing on Friday that it  is exploring the options available to it, as it believes that there is no evidence of misuse of EPIC information by TCS. TCS added that it will vigorously defend its position before the relevant court. The current reduction in its liability in the form of punitive damages came after TCS filed an appeal against the earlier trial court verdict. 

Damages

•  TCS had been told to pay $280 mn in damages 
•  But the appeals court has reduced this to $280 mn