Tata Consultancy Services Ltd, said that the U.S. Western District Court in Wisconsin reduced the damages to $420 million from $940 million granted by a jury verdict in April last year. U.S. court has reduced damages imposed on India’s largest information technology services provider by more than half in a trade secrets case with American software firm Epic Systems Corp.
Tata Consultancy Services Limited (TCS) is an Indian multinational information technology (IT) service, consulting and business solutions company Headquartered in Mumbai, Maharashtra. TCS is one of the largest Indian companies by market capitalization ($80 billion).TCS is placed among the ‘Big 4’ most valuable IT services brands worldwide.
Tata Consultancy Services (TCS) was named the fourth most valuable IT services brand worldwide by Brand Finance, the world-leading brand valuation firm.
The Wisconsin court in April 2016 had ruled the two Tata group companies to pay $240 million to Epic Systems for allegedly ripping off its software, besides $700 million as punitive damages. TCS had in June last year filed with the Wisconsin Federal Judge to vacate the $940-million verdict. Epic opposed it arguing that the court can’t vacate the award but can reduce it as Wisconsin law limits the punitive damages to double the amount of compensatory damages.
“Partially granting TCS motion, the court significantly reduced the compensatory and punitive damages of USD 940 million awarded by the July verdict in April 2016, to USD 420 million,” TCS said in a regulatory filing issued on Sunday.
The reduced damages granted are not bolstered by evidence displayed amid the trial and a strong appeal can be made to superior court than completely put aside the jury decision.
Epic had accused the two Tata group companies, TCS and Tata America International Corp., in a lawsuit filed in October 2014 in US district court in Madison which was amended in January and December 2015, of “brazenly stealing trade secrets, confidential information, documents and data” belonging to Epic.
Epic Systems Corporation is a privately held healthcare software company. According to the company, hospitals that use its software hold medical records of 54% of patients in the United States and 2.5% of patients worldwide. Epic’s market focus is large healthcare organizations and academic medical centers.
Epic’s applications support functions related to patient care, including registration and scheduling; clinical systems for doctors, nurses, emergency personnel, and other care providers; systems for lab technologists, pharmacists, and radiologists; and billing systems for insurers.
Epic had guaranteed that TCS workers were expedited as advisors to a Kaiser Permanente Sunnyside Medical Center in Portland, Ore., to help implement an Epic system there and took more than 6,000 records containing Epic’s system development data by making a phony user account. EPIC said TCS utilized the illegally obtained data to make its own particular healthcare system.
“The company did not misuse or derive any benefit from Epic’s documents and plans to defend its position vigorously before the trail judge as well as in appeal,” TCS said in the filing.
As an organisation TCS remains focused and committed to respecting and protecting proprietary information as well as its reputation,” it said.