Infosys ‘caught red-handed,’ claims Cognizant in escalating US lawsuit over trade secrets

A legal battle between IT giants Cognizant and Infosys has escalated in a US federal court, with Cognizant accusing Infosys of misappropriating trade secrets related to its healthcare software.

In a February 7 filing, Cognizant accused Infosys of refusing an audit that would verify its claims, urging the court to take action against what it called a violation of non-disclosure and access agreements (NDAAs), Mint reported. It alleged that Infosys was “caught red-handed” in the act of misappropriation.

“Infosys was caught red-handed misappropriating TriZetto trade secrets that Infosys originally had access to through non-disclosure and access agreements (NDAAs)," the Mint report quoted Cognizant from the 22-page court response.

Cognizant’s allegations

Cognizant, in a lawsuit filed in August 2024 in a Texas court, alleged that Infosys unlawfully accessed proprietary data from its TriZetto healthcare software, specifically the Facets and QNXT platforms, to develop a competing product. The company claimed Infosys rebranded this data into “Test Cases for Facets” and used software tools to extract confidential information from QNXT.

Infosys’s counterclaims

Infosys, which denied the allegations, responded in January 2025 with a counter-lawsuit against Cognizant and its CEO, Ravi Kumar S., in a US court. The Bengaluru-based firm alleged that Kumar, a former Infosys executive, delayed Infosys’s healthcare software rollout while negotiating his move to Cognizant in January 2023.

The counterclaim accused Cognizant of engaging in monopolistic practices by imposing restrictive contractual obligations, blocking Infosys from participating in training programs, and limiting competition in the healthcare technology market. Infosys is seeking a jury trial, invalidation of Cognizant’s NDAAs, and treble damages for financial losses, in addition to legal fee reimbursements.

Competitive stakes

Both companies compete fiercely in the healthcare IT sector. Infosys derives approximately 7.5% of its revenue ($1.4 billion) from life sciences clients, while Cognizant generates nearly one-third of its revenue ($5.9 billion) from healthcare customers, according to Mint report.