TCS Epic Case: TCS-Epic Systems Case: US Court Confirms $140 Million Fine on TCS

U.S. court in the Western District of Wisconsin upholds $140 million penalties hit () in epic systems case, the company said in a statement to the exchanges on Monday.

“We [TCS] hereby informs you that in the case of Epic Systems Corporation, the U.S. District Court for the Western District of Wisconsin has issued an order reducing the jury’s award of punitive damages to $140 million and instructing the Clerk of the Court to file the appropriate decision, as amended.” This is stated in the message of the TCS.

epic systems
filed a lawsuit against TCS in 2014 alleging that an IT services company stole it intellectual property. In 2016, Epic received a $940 million jury award. In 2017, a Wisconsin court judge lowered the award to $420 million to meet punitive limits in such cases. TCS filed an appeal with a higher court.

In August 2021, the US Court of Appeals ruled that the $280 million (~Rs. 2,098 crore) punitive damages award was “constitutionally excessive” and reduced damages to $140 million. According to the company, this decision has been formalized.

TCS is legally advised that it has a strong case in its favor before the Court of Appeal, and the (court) order for punitive damages is not supported by the facts presented by TCS in the trial court. We have been advised that the order and decision (when made) are subject to appeal to the U.S. Court of Appeals, 7th Circuit of Chicago,” TCS said in a statement Monday.

The lawsuit against TCS for intellectual property theft dates back to 2014, when a US-based firm accused TCS employees of stealing 6,000 pieces of sensitive data containing information about the development of its system by creating a fake user account.

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TCS also confirmed that it “did not misuse or benefit from the Epic documents and planned to vigorously defend its position in the Court of Appeal.”

As an organization, the company remains committed to respecting and protecting confidential information as well as its reputation, it said in a statement Monday.

TCS set aside Rs 1,218 crore ($165 million) to meet this lawsuit in its financial statements for the quarter and year ended March 31, 2021.

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