US jury slaps $940 million fine on TCS, firm denies wrong doing

An US grand jury has slapped a $940 million fine on two Tata group firms Tata Consultancy Services and Tata America International Corp in a trade secret lawsuit filed against them by Epic Systems, news agency PTI reported.

The jury has asked the Tata firms to pay $240 million to Epic Systems for ripping off its software and also asked to pay $700 million in punitive damages, according to the report.

The report said Epic Systems had accused TCS and Tata America International Corp, in a lawsuit filed in October, 2014 in US District Court in Madison which was amended in January and December 2015, of “brazenly stealing the trade secrets, confidential information, documents and data” belonging to Epic.

In a statement, TCS acknowledged the receipt of the verdict, but denied any wrong doing.

TCS said the jury’s verdict on liability and damages was unexpected as it believes they are unsupported by the evidence presented during the trial.

“The Company did not misuse or derive any benefit from downloaded documents from Epic System’s user-web portal. TCS plans to defend its position vigorously in appeals to higher courts. TCS appreciates the trial judge’s announcement from the bench that he is almost certain he will reduce the damages award,” it added.

TCS also said the jury verdict would not have any impact on its Q4 and FY16 results to be announced on Monday.

The company said that the trial judgment will be entered in the case in the next six to eight weeks, following which the parties can file an appeal within 30 days after the judgment is filed.

SOURCE: PTI