US Court Upholds $194 Million Damages Against Tata Consultancy Services

In a significant development for Tata Consultancy Services Limited (TCS), the company has reported an unfavourable ruling from a United States appellate court. The ruling, which was confirmed on November 21, 2025, local time, upholds a damages award of approximately $194 million against the Indian information technology firm in a prolonged legal battle concerning trade secrets.

The case originated from allegations made by Computer Sciences Corporation (CSC), now part of DXC Technology Company, which accused TCS of misappropriating its trade secrets. The United States Court of Appeals for the Fifth Circuit affirmed the decision regarding damages that had been rendered by a lower district court. However, the appellate court provided some relief to TCS by overturning an accompanying injunction and remanding that specific aspect of the case back to the lower court for further consideration.

This latest ruling follows an initial unfavourable judgement disclosed by TCS to Indian stock exchanges in June 2024. The US District Court for the Northern District of Texas, Dallas Division, had previously found TCS liable for misappropriation of trade secrets, a violation under the Defend Trade Secrets Act of 2016. The District Court's order specified $56.15 million in compensatory damages, $112.30 million in exemplary (punitive) damages, and $25.77 million in pre-judgment interest, leading to a total financial penalty of around $194 million. Details regarding certain injunctions imposed by the lower court were not fully disclosed to the public.

Throughout the legal proceedings, TCS has consistently maintained its innocence, asserting that it possesses "strong arguments" against the allegations. In its most recent filing with stock exchanges, the company stated, "The Company is evaluating various options, including review and appeal before the appropriate courts, and intends to vigorously defend its position."

Previously, TCS had claimed that the ruling would not have a significant adverse impact on its financial condition or operational capabilities. However, the confirmation of the extensive damages award now necessitates a reassessment of this stance. TCS has indicated that it will make the necessary financial provisions related to this matter in accordance with applicable accounting standards.

As the case continues to unfold, the implications for TCS and its future operations remain to be seen. Stakeholders will be closely monitoring the company's next steps as it navigates this legal challenge.