TCS hit by unfavourable US appeals court ruling; $194 million in damages upheld

Tata Consultancy Services (TCS) has received an unfavourable ruling from the United States Court of Appeals for the Fifth Circuit in its ongoing legal dispute with Computer Sciences Corporation (CSC), now part of DXC Technology.

In a disclosure dated November 21, 2025, TCS said the Appeals Court has upheld the US District Court’s decision on damages, but vacated the previously granted injunction, directing the Northern District of Texas, Dallas Division, to reassess it as per the appellate directions.

The update follows the company’s earlier communication on June 14, 2024, wherein  TCS had informed the exchanges that the District Court had ruled against it, holding the company liable for a total of $194.2 million, comprising $56,151,583 in compensatory damages, $112,303,166 in exemplary damages, and $25,773,576.60 in prejudgment interest through June 13, 2024.

TCS said it is evaluating all available legal options, including review and appeal before relevant courts, and intends to “vigorously defend” its position. The company added that necessary accounting provisions will be made in its financial statements in line with applicable standards.

The case dates back to 2019, when CSC filed a lawsuit alleging that TCS misappropriated its trade secrets. CSC claimed that TCS gained improper access to its software after several Transamerica employees—who had licensed the software—moved to TCS as part of a $2 billion deal, enabling the Indian IT major to develop a competing insurance platform.