Tata Consultancy Services faces legal setback as US Court upholds $194 million damages case

Tata Consultancy Services (TCS) said that the US Court of Appeals for the Fifth Circuit ruled against them on 21 November, in a case linked to a trade secrets dispute with Computer Sciences Corporation (CSC), now merged with DXC Technology Company (DXC), upholding the District Court's damages decision. The damages totalled up to $194 million against India's biggest IT firm.

The Court vacated the earlier injunction and instructed the US District Court, Northern District of Texas (Dallas Division), to re-evaluate the injunction order in accordance with the Appeals Court's guidance, TCS said.

In an exchange filing on Saturday, TCS said, “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 (evening US time) and confirmed the District Court decision on damages. However, the Court has vacated the previously granted injunction and directed the United States District Court, Northern District of Texas, Dallas Division, to reassess the injunction order basis direction of the Appeals Court.”

What is the $194 million TCS damages case?

In an exchange filing dated 14 June 2024, TCS reported that a court order had been issued against the company in a case brought by CSC, claiming the misappropriation of trade secrets, before the United States District Court, Northern District of Texas, Dallas Division.

Details of the court order –

• The court ordered that TCS is liable to CSC for $56,151,583 in compensatory damages and $112,303,166 in exemplary damages.

• The court assessed that the company is liable for $25,773,576 in prejudgment interest through 13 June 2024.

• The court also passed certain injunctions and other reliefs against TCS.

The company then said that the judgment will not have an adverse impact on its financials or operations, while sharing details of the court order.

Following the 21 November judgement, the IT giant is exploring several options, including review and appeal before appropriate courts, and plans to defend its position.

"Necessary provisions related to this matter will be duly made in the books of accounts and financial statements in accordance with applicable accounting standards," TCS said.