TCS-DXC Trade Secrets Case: US Court Upholds $194 Million In Damages

Tata Consultancy Services Ltd. has said that the United States Court of Appeals for the Fifth Circuit issued an adverse ruling with regards to the District Court's decision on damages in the case filed by DXC Technology Company against the IT firm.

A US District Court had ruled that TCS owes $194 million in damages after finding it guilty of appropriation of trade secrets from DXC.

"We wish to intimate you that the United States Court of Appeals for the Fifth Circuit has issued an adverse ruling on November 21, 2025 (evening US time), in the above matter and confirmed the District Court decision on damages," TCS said in a regulatory filing on Saturday.

The firm said that the court has vacated its previously granted injunction and directed the United States District Court, Northern District of Texas, Dallas Division, to reassess the injunction order basis direction of the Appeals Court.

The case was filed by Computer Sciences Corp. in 2019, which then merged with DXC. The firm accused TCS of improper use of its software after it was licensed to a Transamerica subsidiary. It stated that TCS had taken advantage of the software access given to Transamerica employees who had moved to the IT firm as a part of a $2 billion deal.

It then used this access to create a competing insurance platform, the plaintiff alleged.

The damages include, $56,151,583 in compensatory damages, $112,303,166 in exemplary damages and $25,773,576.60 in prejudgment interest.

Shares of TCS closed 0.17% higher to Rs 3,150 on Friday.