BENGALURU: TCS on Tuesday said it will take a $125 million hit in the December quarter after it received a legal setback in the intellectual property infringement case filed by healthcare firm Epic Systems.

Epic had alleged that TCS and Tata America had accessed its web portal without authorization while servicing a mutual client, and then used this information to develop their own competitive hospital management system software called Med Mantra.

he US Supreme Court has confirmed a punitive damages award of $140 million in the Epic Systems case, TCS said in an exchange filing.

In the analysis in the Seventh Circuit Order in July, the court document showed, “it described how TCS employees – knowing full well that they were unauthorised to view Epic’s web portal – deliberately and repeatedly accessed and downloaded confidential information that Epic had spent years developing, and then used that information to attempt to compete with Epic.”

“The district court also described the steps TCS leadership took to conceal their scheme – disciplining an internal whistleblower, failing to preserve relevant documents, lying when questioned by Epic, and then lying again when questioned under oath. The court described this conduct as “repeated, deliberate, and cynical”.

Published in: The Times of India