TCS Faces Setback as US Appeals Court Confirms $194 Million Penalty

According to Tata Consultancy Services (TCS), the biggest provider of IT services in India, a U.S. court ruled against it in the case involving DXC Technology Company (now Computer Sciences Corporation) on November 21. TCS was fined $194 million by a US District Court last year for allegedly stealing trade secrets. In a regulatory filing on November 22, TCS stated that it would like to inform you that the United States Court of Appeals for the Fifth Circuit rendered a negative decision in the aforementioned case on November 21, 2025 (evening US time) and upheld the District Court's damages ruling.

TCS’ Response

The business went on to say that the Court had vacated the previously granted injunction and instructed the United States District Court, Northern District of Texas, Dallas Division, to reevaluate the injunction order based on the Appeals Court's directive. According to TCS's regulatory filing from June 14 of last year, the court found the corporation liable for $194.2 million, which includes prejudgement interest, exemplary damages, and compensatory damages. Computer Sciences Corporation, which subsequently merged with DXC Technology Company, brought the lawsuit.

As indicated in the regulatory filing, TCS planned to defend its stance and was considering its alternatives, which included a review and appeal before the relevant courts. The firm further stated that, in compliance with applicable accounting rules, the necessary provisions pertaining to this situation will be appropriately made in the books of accounts and financial statements.

Why Computer Sciences Corporation sued TCS?

TCS and Computer Sciences Corp., which has since merged with DXC Technology Co., are embroiled in a trade secrets lawsuit that revolves around claims that TCS exploited CSC's confidential insurance software data. TCS was accused by CSC (now DXC Technology) of stealing trade secrets pertaining to its licensed insurance software platforms, including CyberLife and Vantage-one.

The case, which started in 2019, asserted that Transamerica employees who joined TCS gave TCS unauthorised access to its confidential data and licensed software. CSC claims that this ultimately evolved into TCS's well-known BaNCS platform. In order to digitise the US company's insurance products onto a single platform, TCS and Transamerica inked a $2 billion, ten-year outsourcing agreement in 2018. About halfway through the contract, in 2023, the agreement was mutually ended since Transamerica desired to "in-house" its IT services.

A US District Court found TCS accountable for trade secret theft in June 2024 and imposed around $194 million in penalties. A US Appeals Court has now upheld such damages as of November 21, 2025. However, a previously issued injunction that prohibited TCS from using specific materials going forward was revoked by the US Appeals Court. The case was then returned to the District Court for a review of the injunction decision.