New Delhi, Nov 23 Tata Consultancy Services (TCS) has said that the United States Court of Appeals for the Fifth Circuit has issued an adverse judgment in a long-standing legal dispute with DXC Technology Company, upholding a previous order that imposed damages on the Indian IT major.
In a regulatory filing dated November 22, the company said that the Appeals Court confirmed the US District Court's decision on damages but set aside the injunction ordered by it earlier and sent it back to the lower court in Texas for reconsideration.
The dispute started in 2019 when Computer Sciences Corp., which later merged with DXC Technology, accused TCS of misappropriating its software after it was licensed to a Transamerica subsidiary.
According to the complaint, TCS allegedly used software access provided to Transamerica employees who later joined the company under a $2 billion deal and allowed the IT services firm to develop a competing insurance platform.
According to an earlier filing by TCS on June 14, 2024, the District Court had found the company liable for $194.2 million in total. This included $56.15 million as compensatory damages, $112.30 million as exemplary damages and $25.77 million as prejudgment interest.
The latest ruling has made TCS say that it is reviewing all legal options available to it, including seeking a review and filing an appeal before the relevant courts.
The company said it will continue to defend its position vigorously and make necessary financial provisions in compliance with applicable accounting standards.
Earlier this month, the Labour Commissioner's Office, Pune, summoned TCS over multiple complaints filed by the Nascent Information Technology Employees Senate (NITES) concerning illegal termination of employment and unlawful layoffs.
The hearing is scheduled on November 18.
The complaints are regarding alleged ongoing job terminations as the IT services giant plans to trim about two per cent of its global workforce.
"The Labour Commissioner's Office, Pune, has issued a summons to Tata Consultancy Services (TCS) in multiple matters filed by NITES concerning illegal termination of employment and unlawful layoffs. The hearing was scheduled for November 18, 2025," NITES said in a post on X.
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