TCS to take $125 million hit to Q3 earnings over US lawsuit

TCS to take $125 million hit to Q3 earnings over US lawsuit
TCS to take $125 million hit to Q3 earnings over US lawsuit

The Tata Consultancy Services said on Tuesday it will make a provision of $125 million in its third-quarter results in relation to a 2016 trade secret lawsuit filed against the company by US-based EPIC Systems.

In 2014, Epic Systems had filed the lawsuit against TCS alleging that the Indian IT services company stole its intellectual property (IP) while it was contracted to implement Epic’s healthcare software.

On Monday, the US Supreme Court rejected TCS’ appeal against a verdict passed by the District Court of Wisconsin, upholding an order that includes $140 million in punitive damages.

“…in the EPIC Systems Corporation matter, the United States Supreme Court on November 20, 2023, rejected the Company’s petition to file an appeal against the orders passed by the US Court of Appeals, 7th Circuit, which confirmed the punitive damages award of USD 140 million passed by the District Court of Wisconsin,” TCS said in a regulatory filing.

Epic Systems Corporation had alleged that Tata Consultancy Services misused documents downloaded from Epic System’s user-web portal.

Epic had originally secured a $940 million award against TCS from a Wisconsin federal jury in 2016. The following year, this was more than halved to $420 million – of which $140 million included compensatory damages and $280 million was punitive.

For the second quarter ended 30 September 2023, TCS reported an 8.7% year-on-year rise in its consolidated net profit to 11,342 crore. The company had reported a profit of 10,431 crore in the year-ago period.

The IT company’s consolidated revenue from operations stood at 59,692 crores during the September quarter from 55,309 crore in Q2FY23, a year-on-year jump of nearly 8%. The company’s consolidated total income for the quarter ended September emerged by nearly 8% year-on-year to 60,698 crore.

Shares of TCS closed at 3,510 apiece, down 0.27% on Tuesday.

Milestone Alert!Livemint tops charts as the fastest growing news website in the world

For Latest Updates Follow us on Google News


PREV New Ezra Bridger Actor Purposefully Avoided Watching All of ‘Rebels’
NEXT Fire damages historic Swift Mansion on Chicago’s South Side