Setback for TCS as US court upholds $194 million damages in DXC trade secrets suit

A US appeals court has directed Tata Consultancy Services (TCS) to pay damages totalling about USD 194 million in a trade secrets case filed by Computer Sciences Corporation (CSC), now merged with DXC Technology.

In a stock exchange filing, India’s largest software services firm said the United States Court of Appeals for the Fifth Circuit issued an “adverse ruling” on November 21 (US time), upholding a district court decision on damages in the long-running dispute.

The appeals court, however, vacated an injunction earlier imposed on the IT major and asked the United States District Court for the Northern District of Texas, Dallas Division, to reassess it based on the directions of the appellate court.

"In continuation of our earlier communication...dated June 14, 2024, we wish to intimate you that the United States Court of Appeals for the Fifth Circuit has issued an adverse ruling on November 21, 2025, in the above matter and confirmed the District Court decision on damages," TCS said in the filing titled "Update in the matter of suit filed by Computer Sciences Corporation/DXC Technology Company".

TCS said it is “evaluating various options, including review and appeal before the appropriate courts, and intends to vigorously defend its position”.

The company added that necessary provisions related to the matter will be made in its financial statements in line with applicable accounting standards.

In June last year, a US court had ruled that TCS is liable for misappropriation of trade secrets and levied penal charges of around USD 194 million on the IT major.

In a filing at that time, TCS had informed that the order had been passed against the company in a case filed by CSC -- now merged with DXC Technology Company (DXC) -- alleging misappropriation of its trade secrets before United States District Court, Northern District of Texas, Dallas Division.