TCS to appeal against US court order on damages
Mumbai: Tata Consultancy Services (TCS) on Sunday said it would appeal against a US court order in a lawsuit filed by an American firm for damages on the alleged misuse of its trade documents.
“The company plans to defend its position before the trial judge, as it did not misuse or derive any benefit from the documents of Epic Systems Corporation (Epic),” said the IT major in a regulatory filing on the BSE.
In an appeal by TCS, the Western District Court of Wisconsin, however, reduced the compensatory and punitive damages to $420 million (Rs 3,055 crore) from $940 million (Rs 6,110 crore), awarded by its jury in April 2016.
Wisconsin-based privately-held healthcare software firm Epic had alleged that a TCS employee had illegally downloaded its documents, which amounts to breach of contract and an Intellectual Propriety (IP) infringement.
“The company has received legal advice to the effect that the order and the reduced damages awarded are not supported by evidence presented during the trial and an appeal can be made to a superior court to set aside the jury verdict,” said TCS in the filing.
The order will not have impact on the company’s financial results for the second quarter of 2017-18, to be declared on October 12, it said.