- TCS was sued by Orange County in 2013
- The issue relates to contract for development of a tax collection system
- TCS had also filed a cross-complaint suit against Orange County
"Tata Consultancy Services and its US affiliate have paid the County $26 million to settle litigation over a failed replacement to the County's automated property tax system that initially was to have been completed in 2010 but was never delivered," said Orange County in release titled "Tata Pays $26 Million to Settle Lawsuit over Failed Software".
The issue relates to a contract for development of a tax collection and management system for Orange County. The bidding for the project, held in 2007-2008, was won by TCS.
In the litigation, Orange County had alleged that "TCS took what was originally promised to be a two-year, $6.4 million contract and tried to stretch it into a six-year, $17 million project."
"The settlement was reached after a mediation conducted by Magistrate Judge Jay C. Gandhi, representing a compromise between the two parties, versus the prospect of a lengthy trial in Orange County," a TCS spokesperson said, but declined to confirm or deny the lawsuit amount.
TCS shares ended 1.1 per cent lower at Rs 2,572 as compared to a 0.20 per cent gain in Nifty50 index. (With Agency Inputs)