Tata Consultancy Services (TCS), India’s largest IT services company, will record a one-time exceptional charge of $70 million after the U.S. Supreme Court declined to hear its appeal in a long-running trade secrets dispute, increasing the company’s total financial exposure in the case to $220 million.
The decision, announced on June 15 by the U.S. Supreme Court, leaves intact a $168 million damages award in favour of DXC Technology, effectively bringing the legal battle closer to its conclusion.
TCS stated that it had already set aside $150 million for the matter and will now account for an additional $70 million covering damages, interest and legal expenses. The company said the charge will be reflected in the first quarter of financial year 2027 as a one-time exceptional item.
The dispute originated from a lawsuit filed in 2019 in a federal court in Dallas, Texas, by Computer Sciences Corporation, the predecessor of DXC Technology. The complaint alleged that TCS hired approximately 2,200 employees from Transamerica, an insurance company, and used their internal access and knowledge to develop a competing life-insurance software platform.
In 2023, a jury concluded that TCS had willfully misappropriated trade secrets and recommended damages of $210 million. However, U.S. District Judge Brantley Starr later reduced the amount to $168 million, comprising $56 million in compensatory damages and $112 million in punitive damages.
The reduced award was subsequently upheld by the 5th U.S. Circuit Court of Appeals in 2025, and the Supreme Court’s latest decision means the ruling will remain in effect.
During the appeal process, TCS argued that damages related to unjust enrichment should not have been awarded without proof of actual losses and maintained that the punitive damages imposed were excessive. DXC, meanwhile, contended that the lower court rulings were legally sound and did not warrant further review.
For India, the development is significant because TCS remains one of the country’s largest technology employers and a key contributor to the IT services sector. While the charge represents a relatively small portion of TCS’s financial strength, the case highlights the growing importance of intellectual property protection, compliance and legal risk management for Indian companies operating globally.
TCS reported a net profit of 137.18 billion rupees ($1.45 billion) in the fourth quarter, underscoring the scale of the company despite the financial impact of the legal ruling.
, India's largest IT services company, will record a one-time exceptional charge of $70 million after the U.S. Supreme Court declined to hear its appeal in a long-running trade secrets dispute, increasing the company's total financial exposure in the case to $220 million.){kind=link}