Info-tech

Tata group cos slapped with $940 m fine in trade secret case in US

Varun Aggarwal Mumbai | Updated on January 20, 2018 Published on April 16, 2016

tcs

The software firm says, it will defend its position against the verdict



Country's largest software exporter TCS and another Tata group company Tata America International Corp have been slapped with a $940 million trade secrets verdict in Wisconsin, US, including $700 million in punitive damages, for stealing information related to Epic Systems’ healthcare software. TCS however denied charges and said it will defend its position.

TCS confirmed and said that it had received the jury verdict in a lawsuit filed by Epic Systems in the court of Western District Madison, Wisconsin.

It is expected that the trial judgment will be entered in the case in next six to eight weeks, following which the parties can file an appeal within 30 days after the judgment is filed.

"While TCS respects the legal process, the jury’s verdict on liability and damages was unexpected as the Company believes they are unsupported by the evidence presented during the trial," the company said in a statement.

TCS said it did not misuse or derive any benefit from downloaded documents from Epic System’s user-web portal.

"TCS plans to defend its position vigorously in appeals to higher courts. TCS appreciates the trial judge’s announcement from the bench that he is almost certain he will reduce the damages award," the company said.

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.

TCS clarified that the jury verdict will not have any impact on the TCS Q4 and FY16 financial results to be announced on April 18.

As an organization, TCS remains committed a protecting IP as well as its reputation and financial interests fully.

Published on April 16, 2016
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