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Fifth Circuit Upholds $194 Million Award Against TCS, Vacates Injunction in DXC Trade-Secrets Case

TCS signals possible further review with provisions to be recorded.

Overview

  • The U.S. Court of Appeals for the Fifth Circuit on Nov. 21 affirmed the damages ruling and remanded the injunction question to the Northern District of Texas for reassessment.
  • The affirmed award totals about $194.2 million, comprising $56,151,583 in compensatory damages, $112,303,166 in exemplary damages, and $25,773,576.60 in prejudgment interest.
  • By vacating the injunction, the court removed immediate limits on TCS’s future use of certain materials pending the lower court’s review.
  • CSC, now part of DXC, alleged TCS gained improper access to its licensed insurance software via Transamerica employees and repackaged it into the BaNCS platform.
  • TCS said it is evaluating options including further review or appeal and will book required provisions, which analysts expect could weigh on near-term profit and margins.