US court imposes $194 million penalty on TCS in trade secrets case

According to the judgment, TCS is liable to pay about $56 million in compensatory damages, about $112.3 million in exemplary damages, and $25.7 million in prejudgment interest. Following this judgement, the shares of TCS saw a marginal decline, amid gains in the broader market.

“TCS maintains that it has strong arguments in the matter and intends to defend its position through review petition/appeal to the appropriate Court,” the company said. The company also assured that this judgement will not significantly impact its financials and operations. It further added that it is taking the necessary steps to protect the company’s interests and address these legal challenges.

Shares of TCS closed 0.34% lower at ₹3,819 apiece on the NSE. In contrast, the NIFTY50 closed 0.41% higher for the day.

Tata Consultancy Services (TCS) is an Indian multinational IT services and consulting company headquartered in Mumbai. It operates in 150 locations across 46 countries. As of March 2024, the company has over 6 lakh employees worldwide and a market capitalisation of over $200 billion.