Tata Consultancy Services (TCS), India’s largest IT firm, announced that the US Court of Appeals for the Fifth Circuit issued an unfavorable ruling on November 21 in its ongoing trade secrets dispute with Computer Sciences Corporation (CSC), now merged with DXC Technology. The Appeals Court upheld the District Court’s damages order, confirming a total liability of $194 million against TCS. However, it vacated the previously granted injunction and instructed the Northern District of Texas (Dallas Division) to reconsider the injunction in accordance with its guidance.

The dispute originated from CSC’s allegations of trade secret misappropriation. In June 2024, a prior court order determined TCS’s liability, comprising $56,151,583 in compensatory damages, $112,303,166 in exemplary damages, and $25,773,576 in prejudgment interest through June 13, 2024. The order also included specific injunctions and other relief measures. At that time, TCS stated that the ruling would not materially affect its financial performance or operations.

Following the Appeals Court decision, TCS is evaluating several strategic responses, including potential appeals to higher courts. The company also confirmed that it will make the necessary provisions in its accounts and financial statements, in line with applicable accounting standards, to address the judgment responsibly while defending its legal position.