Indian IT-services giant TCS has suffered a major legal setback in the United States. On November 21, 2025, the United States Court of Appeals for the Fifth Circuit upheld a damages award of approximately US $194.2 million against TCS in a long‑running trade secrets dispute with DXC Technology (formerly Computer Sciences Corporation, CSC).
The underlying dispute began in 2019, when CSC accused TCS of misappropriating its insurance‑software trade secrets. The suit alleged that CSC had licensed software to a subsidiary of Transamerica Corporation, and that many of that subsidiary's employees later transferred to TCS under the terms of a large outsourcing contract.
According to CSC, TCS used its access to key software (including the BaNCS platform) to gain an unfair competitive advantage.
In June 2024, the United States District Court for the Northern District of Texas, Dallas Division, found TCS liable under the Defend Trade Secrets Act of 2016, ordering US $56.15 million in compensatory damages, US $112.30 million in exemplary (punitive) damages, and about US $25.77 million in pre‑judgment interest, in total about US $194.2 million.
In its regulatory filing, TCS mentioned that ‘the Fifth Circuit's decision confirms the District Court decision on damages’ and that the company ‘is evaluating various options, including review and appeal before the appropriate courts, and intends to defend its position vigorously.’
Significantly, the Appeals Court canceled the permanent injunction that had earlier prevented TCS from accessing some of the CSC materials despite the damages being affirmed, and directed the injunction aspect of the matter to be re-evaluated by the District Court.
Judicially, the verdict was a decisive defeat for TCS's position in the US and would be a major concern for investors from a business perspective. Some comments say that while TCS has earlier claimed the impact on its financials would be ‘no major adverse effect’, the confirmation of nearly US $200 million damages may force a reassessment of that stance.
On the plus side, TCS’s liability to pay could still depend on further procedural litigation, particularly on the injunction appeal avenues that remain available. TCS also said it would make the “necessary provisions” in its books of accounts as per applicable accounting standards.
The Fifth Circuit has affirmed TCS's liability for the whole US$194.2 million in damages, a severe legal defeat. The injunction is still under review, but the financial exposure and reputational consequences for the Indian‑based IT major are grave, particularly in the high‑stakes world of global outsourcing intellectual‑property litigation.