Cognizant files lawsuit against Infosys over trade secrets; Infy denies allegations

Cognizant subsidiary TriZetto has accused Infosys of stealing trade secrets and proprietary information related to healthcare insurance software. Infosys denies the allegations

Livemint
Published24 Aug 2024, 02:12 PM IST
Cognizant vs Infosys: TriZetto files lawsuit claiming alleged theft of healthcare software secrets
Cognizant vs Infosys: TriZetto files lawsuit claiming alleged theft of healthcare software secrets

TriZetto, a subsidiary of IT giant Cognizant, has filed a lawsuit against Infosys in a U.S. federal court. The lawsuit accuses the Bengaluru-headquartered company of stealing trade secrets and proprietary information related to healthcare insurance software, as per PTI report.

Infosys has responded to the allegations, firmly denying any wrongdoing. In a statement, the company confirmed its awareness of the lawsuit and expressed its intent to vigorously defend its position in court, as per the report.

Also Read | US seeks L&T chair S.N. Subrahmanyan’s testimony in Cognizant bribery case

The lawsuit, filed in a Texas federal court, alleges that Infosys unlawfully accessed data from TriZetto's software products—Facets and QNXT—and used this information to develop and market a competing product. These software solutions are widely used by healthcare insurance companies to automate various tasks.

Also Read | Rajesh Nambiar quits Cognizant to lead Nasscom; Rajesh Varrier his successor

Cognizant's lawsuit claims that Infosys misappropriated TriZetto's software to create "Test Cases for Facets," effectively repackaging the data into an Infosys-branded product. Additionally, the lawsuit alleges that Infosys developed software to extract data from QNXT, which contained confidential information belonging to TriZetto, as quoted by PTI.

The timing of the lawsuit is notable, as it comes shortly after Cognizant appointed former Infosys executive Rajesh Varrier as its global head of operations and Chairman and Managing Director for India. Varrier's appointment follows the resignation of Rajesh Nambiar, who is set to become the next president of Nasscom. Additionally, Cognizant's CEO, Ravi Kumar S, is also a former Infosys executive, having spent 20 years at the company and holding several leadership roles, including President from January 2016 to October 2022.

Also Read | Infosys Share Price Highlights : Infosys closed today at ₹1862.35, down -0.94% from yesterday’s ₹1879.95

In 2014, Cognizant Technology Solutions made headlines with a landmark acquisition, purchasing TriZetto, a Colorado-based healthcare IT company, for $2.7 billion (approximately 16,400 crore) in cash. This transaction marked the largest acquisition in the history of the Indian IT sector, highlighting Cognizant's bold strategic moves. Although Cognizant is headquartered in the United States, the majority of its workforce is based in India.

(With Inputs from PTI)

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First Published:24 Aug 2024, 02:12 PM IST
Business NewsCompaniesNewsCognizant files lawsuit against Infosys over trade secrets; Infy denies allegations

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