New Delhi, June 16: The US Supreme Court has dismissed the petition filed by Tata Consultancy Services (TCS) regarding a trade secret case. This decision has led to a total loss of $220 million for the company, as disclosed in an exchange filing on Tuesday.
On Monday, the Supreme Court upheld a ruling that awarded $168 million in damages to DXC Technology, rejecting TCS’s petition.
In the filing, TCS stated, “We would like to inform you that the United States Supreme Court has denied our petition for a writ of certiorari to review the decision of the United States Court of Appeals for the Fifth Circuit in the aforementioned case on June 15, 2026.”
The company further mentioned, “In accordance with accounting standards, we have already made a provision of $150 million in our accounts related to this matter. Now, the company will provide an additional $70 million for losses, interest, and legal expenses, which will be reported as an extraordinary expense in the first quarter of fiscal year 2027.”
This case originated in 2019 when DXC’s former company, Computer Sciences Corporation, filed a lawsuit in a federal court in Dallas. TCS was accused of hiring approximately 2,200 employees from another insurance company, Transamerica, and using their insider information to create a competing life insurance platform.
In 2023, a jury suggested that TCS should pay $210 million for deliberately stealing trade secrets. However, US District Judge Brantley Starr reduced this amount to $168 million, which included $56 million in compensatory damages and $112 million in punitive damages. The Fifth US Circuit Court of Appeals upheld this decision in 2025.
TCS argued in the Supreme Court that DXC should not have received damages for “unjust enrichment” without proving actual losses, and that the punitive damages were excessive. Nevertheless, the court dismissed these arguments.
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