Tata Consultancy Services Oct. 1 said a U.S. court has more than halved the compensatory and punitive damages demanded from the company to $420 million in a lawsuit filed by Epic Systems Corp, according to reports.
The matter relates to a U.S. grand jury order that slapped two Tata group companies, Tata Consultancy Services and Tata America International Corp., with a $940 million fine in a trade secret lawsuit filed against them by Epic in April 2016, reports said.
TCS said an opinion and order has been issued by the western district court of Wisconsin in the suit filed by Epic Systems against the company.
“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,” TCS said in a regulatory filing issued Oct. 1.
The Mumbai-headquartered IT company said it has received a legal advice that the order and the reduced damages awarded are not supported by evidence presented during the trial and a strong appeal can be made to superior court to fully set aside the jury verdict, the reports said.
Epic had accused TCS and Tata America International Corp., in a lawsuit filed in October 2014 in U.S. district court in Madison, Wis., which was amended in January and December 2015, of “brazenly stealing trade secrets, confidential information, documents and data” belonging to Epic, it added.
The Wisconsin court in April 2016 had ruled the two Tata group companies to pay $240 million to Epic Systems for allegedly ripping off its software, besides $700 million as punitive damages, according to the reports.
“The company did not misuse or derive any benefit from Epic’s documents and plans to defend its position vigorously before the trial judge as well as in appeal,” TCS said in the filing.
Additionally, TCS was scheduled to appear in a federal court in Oakland, Calif., this week in a separate case in which a group is suing them for anti-American hiring practices.
The lawsuit alleges TCS of discriminatory hiring practices, claiming that 79 percent of its U.S. workforce is South Asian when that group makes up merely 12.5 percent of the relevant labor market, according to a Bloomberg report.
TCS denies the allegations levied against them. The October hearing is to determine whether to dismiss the case entirely or expand it to include potentially thousands of American workers who either weren’t hired or were fired by TCS because of their race over the past six years, the report said.
The lawsuit against TCS was filed in 2015 by a white IT worker who claimed he was subject to "substantial anti-American sentiment" within the company and was ultimately terminated within 20 months despite having almost 20 years of experience in the field. He was later replaced as the lead plaintiff by two other men, according to the report.
The company is "confident that its evidence, data, and expert analysis" will persuade the judge not to let the case to advance as a class action and expects the claims will be thrown out, the report said, citing Benjamin Trounson, a spokesman for TCS in North America.