US Court Upholds Penalty Of $140 Million On TCS In EPIC Systems Case

The US Court of Appeals upheld the compensatory damages of $140 million to be paid by Tata Consultancy Services (TCS) in EPIC Systems Corporation matter, the country's largest information technology company said in a stock exchange filing on Friday. "The Court upheld the compensatory damages award of $140 million," TCS said in an exchange filing.

The court however, held that the punitive damages award of $280 million is constitutionally excessive and directed the trial court to reassess the punitive damages, TCS said.

Meanwhile, TCS has said that it is exploring the options available to it, as it believes that there is no evidence of misuse of EPIC information by TCS.

The case dates back to 2014 when Epic first sued TCS with allegations that it illicitly downloaded documentation for software it had been hired to help install at Kaiser Foundation Hospitals, accusing the Indian company of "brazenly stealing" confidential information and trade secrets in order to help its competing healthcare software provider, Med Mantra, according to court documents. It filed an amended complaint in 2015.

A jury in Wisconsin in 2017 awarded medical software company EPIC Systems $940 million in damages.

TCS shares were trading 0.12 per cent lower at Rs 2,249, underperforming the Sensex which was up 0.8 per cent.