Tata Consultancy Services (TCS) has reported that the U.S. Court of Appeals for the Fifth Circuit has ruled against it in a prolonged legal fight with DXC Technology Company. The appellate court upheld a prior district‑court order that requires TCS to pay damages, while wiping out an earlier injunction and sending part of the case back to the Texas court for further consideration.
The dispute began in 2019 when Computer Sciences Corp.—which later merged into DXC—accused TCS of misusing its software after a license was granted to a Transamerica subsidiary. The complaint further alleges that TCS leveraged software access provided to Transamerica employees who later joined the firm under a $2 billion acquisition, helping the company build a competing insurance platform.
On June 14, 2024, TCS disclosed that the district court had found it liable for a total of $194.2 million, consisting of $56.15 million in compensatory damages, $112.30 million in exemplary damages, and $25.77 million in prejudgment interest.
In response to the newest ruling, TCS said it is examining all available legal options, including filing an appeal and seeking judicial review. The company also confirmed that it will continue to defend itself vigorously and will make the necessary financial provisions in line with applicable accounting standards.
Separately, the Labour Commissioner’s Office in Pune has summoned TCS over several complaints filed by the Nascent Information Technology Employees Senate (NITES). The allegations claim illegal terminations and unlawful layoffs as TCS plans to reduce its global workforce by roughly 2 %. A hearing is scheduled for November 18. NITES posted on X:
> “The Labour Commissioner’s Office, Pune, has issued a summons to Tata Consultancy Services (TCS) in multiple matters filed by NITES concerning illegal termination of employment and unlawful layoffs. The hearing was scheduled for November 18, 2025,”
aps/khz
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