IT major Tata Consultancy Services (TCS), a division of Tata Sons, on Sunday said a US court has more than halved the compensatory and punitive damages demanded from the company to $420 million in a lawsuit filed by Epic Systems Corporation, PTI reported.
"Partially granting TCS motion, the court significantly reduced the compensatory and punitive damages of $940 million awarded by the July verdict in April 2016, to $420 million," Mumbai-headquartered TCS said in a regulatory filing issued on Sunday.
"The company did not misuse or derive any benefit from Epic's documents and plans to defend its position vigorously before the trail judge as well as in appeal," TCS said in its filing.
A US grand jury order had slapped two Tata group companies — TCS and Tata America International Corp — with a $940 million fine in a trade secret lawsuit filed against them by Epic in April 2016, the PTI report said.
In a lawsuit filed in October 2014 at the US District Court in Madison, Epic had accused TCS and Tata America International Corp of "brazenly stealing trade secrets, confidential information, documents and data" belonging to Epic. The lawsuit was further amended in January and December 2015.
The Wisconsin court in April 2016 had directed the two Tata group companies to pay $240 million to Epic Systems for allegedly ripping off its software, besides $700 million as punitive damages.
The report quoted TCS as saying that it has received a legal advice that the order and reduced damages awarded are not supported by evidence presented during the trial and a strong appeal can be made to the superior court to fully set aside the jury verdict.
An opinion and order has been issued by the Western District Court of Wisconsin in the suit filed by Epic against the company, the report said.
TCS said the order will not have any impact on second quarter financial results expected on October 12.
