In a setback to Tata Consultancy Services Ltd. (TCS), the company informed the exchanges that it has received an adverse ruling from a US appeals court, which has upheld nearly $194 million damages award against the Indian IT giant in a long-running trade secrets lawsuit.
The case, filed by Computer Sciences Corporation (CSC), now part of DXC Technology Company, alleged that TCS misappropriated its trade secrets.
The latest development came on the evening of November 21, 2025 (US time), when the United States Court of Appeals for the Fifth Circuit confirmed the decision on damages issued by a lower district court.
However, the appellate court provided partial relief to TCS by vacating an associated injunction and sending that part of the case back to the lower court for reassessment.
This ruling follows an initial adverse judgment that TCS disclosed to Indian stock exchanges in June 2024. At that time, the company revealed that the US District Court, Northern District of Texas, Dallas Division, had found it liable for misappropriation of trade secrets under the Defend Trade Secrets Act of 2016.
The District Court's order held TCS liable for $56.15 million in compensatory damages; $112.30 million in exemplary (punitive) damages; and $25.77 million in pre-judgment interest (as of June 13, 2024). This brought the total financial penalty to approximately $194 million. The lower court had also passed certain injunctions against TCS, the details of which were not fully disclosed.
Throughout the process, TCS has maintained its position, asserting that it has "strong arguments" against the allegations. In its latest stock exchange filing, the company stated: "The Company is evaluating various options, including review and appeal before the appropriate courts, and intends to vigorously defend its position."
While TCS had previously claimed the judgment would have "no major adverse impact on its financials and operations," the confirmation of the massive damages award now forces its hand. The company has announced that "necessary provisions related to this matter will be duly made in the books of accounts and financial statements in accordance with applicable accounting standards."