Rs 1700 Crore Penalty Imposed On TCS For Stealing Codes, Trade Secrets Of Client: How This Happened?


Sheetal Bhalerao

Sheetal Bhalerao

Nov 29, 2023


In a recent update, Indian IT major, Tata Consultancy Services (TCS) has been ordered to pay $210 million to DXC Technology by a Texas court in another trade-secret case.

Rs 1700 Crore Penalty Imposed On TCS For Stealing Codes, Trade Secrets Of Client: How This Happened?

How Did This Happen?

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

The news comes barely a week after the US Supreme Court confirmed a penalty of $140 million against this Indian IT services major.

In the DXC Technology case, a jury in Dallas, Texas federal court, found TCS guilty of misusing confidential information about DXC’s Vantage-One and CyberLife software as they were managing life insurance and annuity policies to create its own platform.

TCS Being Charged A Penalty Of $210 Million 

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

Further adding, “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.”

According to the jury, TCS owed DXC $70 million for misappropriating its trade secrets and an additional $140 million as its misuse was “willful and malicious.”

All this started when a case was filed by CSC in 2019, claiming that TCS hired 2,200 employees of Transamerica in 2018.

Through these employees, they got access to CSC’s software, knowledge of its source code and other proprietary information to build a competing life-insurance platform.

It appears that CSC had licensed its software to Transamerica.

Moving ahead, TCS had bagged a 10-year $2-billion deal with Transamerica Life Insurance in 2018. 

But, the deal was canceled earlier this year, citing the challenging market environment for the insurance company as it looked to tighten tech spending.

TCS said it would take a hit of $125 million in Q3 earnings over a similar lawsuit by Epic Systems, last week.

Besides this with these latest findings, the US Supreme Court upheld a fine of $140 million against TCS for stealing its intellectual properties to develop its own offering.


Sheetal Bhalerao
Sheetal Bhalerao
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