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TCS to make Rs 1,218 cr provision for claims in Epic Systems case In a seperate filing, TCS also informed that it will also consider share buyback proposal during its board meet to accept second-quarter results on Wednesday
Tata Consultancy Services will be making a precautionary provision of Rs 1,218 crore in a trade secret theft lawsuit involving medical software company Epic Systems. India’s largest software company will make a provision of Rs 1,218 crore as an exceptional item in the upcoming results to be announced on October 7 as a provision in the books for a legal claim in the Epic Systems matter. In August, an appeals court in the US upheld that the punitive damages of $280 million against TCS in the lawsuit were
‘excessive’. The court halved the damages to $140 million. “TCS is legally advised that it has the correct and the strongest possible arguments in its favour and the order and reduced damages are not supported by facts presented during the trial”, according to its exchange filing. In September 2020, TCS filed a petition seeking re-hearing on both compensatory and punitive damages. EPIC has also filed a petition seeking re-hearing on the decision of the Appeals Court invalidating award of punitive damages exceeding the quantum of compensatory damages. “The provision in the books for the legal claim is being made as a matter of prudence”, TCS said. The matter relates to a US grand jury order that slapped two Tata Group companies — TCS and Tata America International Corp.— with a $940 million fine in a trade secret lawsuit filed against them by the Wisconsin-based health care software firm in 2016…Read More