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U.S. Appeals Court Upholds $194 Million in TCS Trade-Secret Case, Vacates Injunction

The dispute now returns to a Texas district court for a reassessment of non-monetary relief following the Fifth Circuit’s Nov. 21 ruling.

Overview

  • The Fifth Circuit affirmed the 2024 judgment against Tata Consultancy Services and maintained total damages at about $194.2 million.
  • Judges vacated the prior injunction and remanded that remedy to the Northern District of Texas in Dallas for reconsideration.
  • The award consists of $56,151,583 in compensatory damages, $112,303,166 in exemplary damages, and $25,773,576.60 in prejudgment interest through June 13, 2024.
  • TCS said it is evaluating further legal options, including potential additional review or appeal, and will record the necessary accounting provisions.
  • The case, initiated by CSC before its merger into DXC, alleges TCS used Transamerica-linked software access and employee moves to build a competing insurance platform, with market reaction reported as minimal.