In a regulatory filing, TCS disclosed that the US Supreme Court dismissed its petition for a review of a lower court’s decision, which upheld the damages awarded to DXC. As a result, the company will account for an additional provision of $70 million for damages, interest, and legal fees in the first quarter of FY27. This amount will be recorded as a one-time exceptional expense.
Previously, TCS had allocated $150 million related to the litigation, adhering to applicable accounting standards.
The conflict originated from a lawsuit initiated in 2019 by DXC’s predecessor, Computer Sciences Corporation (CSC), which accused TCS of unlawfully taking trade secrets associated with life-insurance software. The allegations claimed that after hiring over 2,000 employees from the insurance company Transamerica, TCS used their insights and access to proprietary software to create a competing insurance platform.
TCS has continuously refuted the charges, asserting that the information in question was not confidential and that it had legally obtained access to the software.
In 2023, a jury advised that TCS pay $210 million for intentional trade secret misappropriation. However, a federal judge later reduced this sum to $168 million, which included $56 million in compensatory damages and $112 million in punitive damages. This ruling was subsequently affirmed by the Fifth Circuit Court of Appeals.
In its appeal to the US Supreme Court, TCS contended that the damages awarded to DXC were not justified under US trade secret legislation and argued that damages for unjust enrichment should not have been granted without evidence of actual losses. The company also contested the scale of the punitive damages awarded.
DXC, on the other hand, upheld that the appellate court had properly applied established legal standards and asserted that the case did not qualify for further review.
TCS shares closed Monday’s trading slightly higher at ₹2,162.60. However, the stock has seen a decline of about 33% so far in 2026.
