TCS's US court appeal was denied, and as a result, it must now pay $140 million in compensation

TCS's US court appeal was denied, and as a result, it must now pay $140 million in compensation

The US court has dismissed TCS's appeal. In the last ruling, TCS was ordered to pay $140 million in damages.

The business's appeal against the district court's $140 million damages award against IT major Tata Consultancy Services (TCS) was denied by the Supreme Court of America. Additionally, the business included a particular provision for this in the third quarter results. This information was released by the corporation on Tuesday in the stock market. 

What is the whole situation? 

news organization According to PTI, TCS was ordered by the US District Court of Wisconsin to reimburse Epic Systems Corporation for $140 million in damages. Epic Systems has filed a claim against TCS, claiming that the latter had violated its intellectual property rights by creating the "Med Mantra" hospital administration system. It was put into use in 2009 for a large hospital management organization in India. 

The Money Control report states that this issue has existed since 2014. In 2016, TCS was determined to have committed this. Additionally, the court's original judgment for TCS to pay damages of $940 million was eventually lowered to $420 million during the hearing, with TCS to pay $280 million in penalties and $140 million in compensation. Had to part with it. Subsequently, following a court appeal, the penalty sum was also lowered to $140 million.

According to information provided to the stock market by TCS, the Supreme Court of America denied the company's request to appeal the ruling made by the 'US Court of Appeals', 7th Circuit, in the Epic Systems Corporation case on November 20, 2023. The ruling upheld a Wisconsin district court's award of $140 million in punitive compensatory damages. 

TCS said that it intends to make the necessary arrangements in light of the US Supreme Court's ruling. That comes to a total of $125 million. The financial statements for the third quarter that ends on December 31, 2023, will include this provision.