TCS Allocates Rs 1300 Crore For Paying Penalty & Legal Costs For This Case
After being fined $140 million for a case, Tata Consultancy Services has reportedly allocated $165 million for the legal claim.
The US Court of Appeals, 7th Circuit, Chicago, had ordered the company to pay this fine to Epic Systems Corp. last August. TCS had reportedly accessed and downloaded without authorization the confidential information of Epic systems and used it in the development of the company’s product MedMantra.
Read on to find out all the information about this lawsuit against Tata Consultancy Services.
TCS Sets Aside Rs. 1218 Crores For Legal Fees As Ordered By US Court
TCS has confirmed that Rs 1,218 crore ($165 million) has been allocated to the legal claim. He states, “…the Company had provided Rs 1,218 crore ($165 million) towards this legal claim in its consolidated statement of profit and loss for the year ended March 31, 2021.”
The company has included the amount in the financial statements for the quarter and the year that ended March 31, 2021.
In 2014, a Verona, Wisconsin-based company, Epic Systems Corp. had hired Tata Consultancy Services and its subsidiary, Tata America International Corporation, to assist the former in setting up its systems at a medical facility in Portland.
By October, Epic Systems accused TCS employees who were working on site of stealing the company’s trade secrets and intellectual properties. They also accused the employees of building another software that was copied from the original software and filed a lawsuit against TCS.
In April 2016, a jury in Wisconsin ruled that TCS was guilty and would have to pay $240 million as compensation for the damages to Epic and $700 million as punitive damages.
TCS has stated that a petition has been filed at Appeals Court for re-hearing of the awards for both compensatory and punitive damages.
The note states, “In November 2020, the petitions for re-hearing filed by the Company and Epic, respectively, were denied by the Appeals Court. The proceedings for assessing punitive damages have been remanded back to the District Court.”