Tata Consultancy Services faces legal setback as US Court upholds $194 million damages case
Purbalee Dutta 
Tata Consultancy Services (TCS) announced that the U.S. Court of Appeals for the Fifth Circuit delivered an adverse ruling on November 21, 2025, in a trade secrets dispute with Computer Sciences Corporation (CSC), which has since merged with DXC Technology (DXC). The Appeals Court upheld the District Court’s decision on damages, amounting to a total of $194 million against TCS, India’s largest IT services firm.
However, the Appeals Court vacated the earlier injunction and directed the U.S. District Court for the Northern District of Texas, Dallas Division, to re-evaluate the injunction in line with its guidance, TCS said in an exchange filing. The case traces back to June 2024 when the District Court ruled that TCS had misappropriated CSC’s trade secrets. The court had ordered compensatory damages of $56.15 million, exemplary damages of $112.3 million, and prejudgment interest of $25.77 million, in addition to certain injunctions and other relief measures.
TCS emphasized that the judgment will not materially affect its financials or operations. Following the recent appellate ruling, the company is exploring all available options, including potential review or further appeal, and plans to vigorously defend its position. TCS also noted that all necessary provisions related to this matter will be recorded in its accounts and financial statements in accordance with applicable accounting standards.
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