US Court of Appeals Confirms USD 194 Million Damages Against Tata Consultancy Services in Trade Secrets Case

Tata Consultancy Services (TCS) has announced that the US Court of Appeals has ruled against them in a trade secrets dispute with Computer Sciences Corporation (CSC), now part of DXC Technology Company. The court upheld a previous decision by the District Court, which imposed damages of approximately USD 194 million on TCS. However, the Appeals Court has vacated an earlier injunction and instructed the District Court to reassess it.

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In a recent filing with the Bombay Stock Exchange (BSE), TCS stated that the United States Court of Appeals for the Fifth Circuit issued this adverse ruling on November 21, 2025. The ruling confirmed the District Court's decision regarding damages in the case involving CSC/DXC Technology Company. TCS is considering various legal options, including seeking a review and appealing to appropriate courts.

Trade Secrets Dispute with CSC

The dispute dates back to June of the previous year when a US court found TCS liable for misappropriating trade secrets. The court imposed penal charges amounting to around USD 194 million on the Indian IT giant. This case was initially filed by CSC, which has since merged with DXC Technology Company, in the United States District Court, Northern District of Texas, Dallas Division.

TCS has indicated that they will make necessary provisions in their financial statements and books of accounts according to applicable accounting standards. The company is committed to defending its position vigorously in this matter. They are exploring all possible avenues for legal recourse following this recent ruling.

Financial Implications and Legal Strategy

The Tata Group company is assessing its next steps in light of this development. They have expressed their intention to continue defending their stance through appropriate legal channels. The financial impact of this ruling will be reflected in their accounts as per standard accounting practices.

In their communication dated June 14, 2024, TCS had previously informed stakeholders about the ongoing legal proceedings. This latest update serves as a continuation of that communication, providing further details on the court's recent decision and its implications for TCS.

The reassessment of the injunction by the District Court will be based on directions from the Appeals Court. This aspect remains a key focus for TCS as they navigate through this complex legal situation.

This case highlights significant challenges faced by global IT firms in protecting intellectual property and trade secrets. As TCS evaluates its options, it underscores the importance of robust legal strategies in safeguarding business interests.

With inputs from PTI