US Supreme Court upholds $140 million punitive damages order against TCS

United States Supreme Court has rejected Tata Consultancy Services (TCS) appeal against a $140 million punitive damages order passed by a district court, the company said on on November 21.

The District Court of Wisconsin has awarded $140 million damages in favour of Epic Systems Corporation which alleged that TCS infringed its intellectual property for the development of hospital management system ‘Med Mantra’ which was implemented for a large hospital chain in India in 2009.

“…in the EPIC Systems Corporation matter, the United States Supreme Court on November 20, 2023, rejected the Company’s petition to file an appeal against the orders passed by the US Court of Appeals, 7th Circuit, which confirmed the punitive damages award of $140 million passed by the District Court of Wisconsin,” TCS said in a regulatory filing.

Epic had alleged that TCS misused documents downloaded from Epic System’s user-web portal.

TCS said that following the US Supreme Court order, the company intends to make the balance provision of approximately $125 million in its financial statements as an exceptional item, for the third quarter and nine months ending December 31, 2023. The Hindu