TCS to take USD70 million hit, after rejection of appeal

Tata Consultancy Services Ltd said it will make a one-time provision of USD 70 million in first quarter of FY2027, towards damages, interest and legal cost, after the US Supreme Court rejected its appeal in a legal dispute involving Computer Sciences Corporation, now part of DXC Technology Company (DXC), in connection with alleged misappropriation of its trade secrets.

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On 15 June, The United States Supreme Court has denied our petition for a writ of certiorari to review the judgment of the United States Court of Appeals for the Fifth Circuit, the company said in a stock exchange filing.

TCS said it has already provided USD150 million in relation to case.

In April 2019, Computer Sciences Corporation filed a legal claim against TCS in the Court of Northern District of Texas and Dallas Division (trial court) alleging misappropriation of trade secrets and other CSC’s confidential information and sought preliminary and permanent injunctive relief, and unspecified monetary damages and disgorgement of profits.

On 21 November 2025, the Fifth Circuit issued a decision affirming the District Court’s rulings on liability but vacating the previously granted Injunction and remanding to the district court to re-enter a narrower injunction. The Company filed a petition for rehearing en banc and a petition for panel rehearing in the appellate court on December 5, 2025, which was denied on 19 December 2025, as per TCS latest annual report.

On 19 March 2026, TCS had filed a petition for a writ of certiorari in the US Supreme Court seeking a review of the case.

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