India's top IT company Tata Consultancy Services was fined
$940 million by a U.S. Federal Court in Wisconsin Friday in a trade
secret lawsuit by U.S.-based medical software company Epic Systems. TCS
said it would appeal against the verdict in higher courts.
Epic had filed a lawsuit against TCS first in 2014, accusing
the Indian company of secretly downloading confidential information for
a software it had been hired to help install. Epic also alleged that
TCS had “brazenly” stolen trade secrets in order to help rival
healthcare software provider Med Mantra, according to case files in the Wisconsin court.
TCS was fined $700 million in punitive damages and has been
asked to pay an additional $240 million to Epic Systems Corp. after the
jury ruled against TCS on seven claims, including breach of contract,
misappropriation of trade secrets, unfair competition and unfair
enrichment.
"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 mailed to IANS, an Indian news agency.
"TCS appreciates the trial judge's announcement from the
bench that he is almost certain he will reduce the damages award," the
statement added.
Epic, a privately held company based in Verona, Wisconsin, had
complained that Tata workers, hired as consultants to help a client,
Kaiser Permanente in Oregon , downloaded 6,477 documents accounting for
1,687 unique files from Epic’s computers inappropriately. The Indian
company’s leadership was aware of the development that had begun in
2012, Epic further alleged.
TCS has engaged in an "elaborate campaign of deception to
steal documents, confidential information, trade secrets, and other
information and data, with the purpose of utilizing technical expertise
developed after years of hard work and investment,” the lawsuit alleged.
However, TCS reportedly refuted the claims and said no
benefit was derived. The company – one of the largest Indian IT
companies – said that the verdict would not have any impact on its
fourth-quarter results set to be announced Monday.
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