A US court has levied a $194 million fine on Tata Consultancy Services (TCS) for misappropriation of trade secrets, the company said in a regulatory filing.
The IT giant, which is the second largest company in the country in terms of market capital, said it is taking necessary steps to protect its interest through review or appeal as it has strong arguments against the judgement.
"The company believes that the Judgement has no major adverse impact on its financials and operations," the tech major said in the filing.
The court order, which was sent to the company on June 14, was in response to a case registered against TCS by Computer Sciences Corporation (CSC), alleging misappropriation of its trade secrets before the US District Court, Northern District of Texas, Dallas Division. CSC is now merged with DXC Technology Company (DXC).
"The court ordered that the company is liable to CSC for USD 56,151,583 in compensatory damages and USD 112,303,166 in exemplary damages. The court also assessed that the company is liable for USD 25,773,576.60 in prejudgment interest through June 13, 2024," the TCS said in the filing.
TCS, which was the largest gainer among Top 10 Indian firms, saw its market valuation surging to Rs 14.08 lakh crore after a Rs 80,828.08 crore hike last week.
