In a regulatory filing, TCS said the US Supreme Court rejected its petition seeking a review of a lower court ruling that upheld damages awarded to DXC. Following the development, the company will record an additional provision of $70 million towards damages, interest and legal expenses in the first quarter of FY27. This will be recognised as a one-time exceptional charge.
TCS had previously set aside $150 million in connection with the litigation in accordance with applicable accounting standards.
The dispute stems from a lawsuit filed in 2019 by DXC’s predecessor, Computer Sciences Corporation (CSC), which accused TCS of misappropriating trade secrets linked to life-insurance software.
The complaint alleged that after hiring more than 2,000 employees from insurance giant Transamerica, TCS used their knowledge and access to proprietary software to develop a competing insurance platform.
TCS consistently denied the allegations, maintaining that the information in question was not confidential and that it had lawfully accessed the software.
In 2023, a jury recommended that TCS pay $210 million for wilful misappropriation of trade secrets. However, a federal judge later reduced the award to $168 million, comprising $56 million in compensatory damages and $112 million in punitive damages. The decision was subsequently upheld by the Fifth Circuit Court of Appeals.
In its appeal before the US Supreme Court, TCS argued that the damages awarded to DXC were not supported by US trade secret laws and contended that unjust enrichment damages should not have been granted without proof of actual losses. The company also challenged the size of the punitive damages award.
DXC, however, maintained that the appellate court had correctly applied established legal principles and argued that the case did not warrant further review.
TCS shares ended Monday’s session marginally higher at ₹2,162.60. The stock has declined about 33% so far in 2026.
