Big blow to TCS from US Supreme Court, petition in trade secret case rejected, loss of 220 million dollars

New Delhi, June 16. The petition filed by TCS regarding the trade secret case has been rejected by the US Supreme Court. Due to this the company has suffered a total loss of 220 million dollars. This information was given by the company in its exchange filing on Tuesday. On Monday, the US Supreme Court rejected TCS’ plea and upheld the $168 million damages award in favor of DXC Technology.

In the filing, TCS said, “We wish to inform you that the United States Supreme Court has rejected our petition for ‘Writ of Certiorari’ to review the decision of the United States Court of Appeals for the Fifth Circuit on June 15, 2026 in the above mentioned matter.” The company further said, “In accordance with accounting standards, we have already made a provision of US $ 150 million in our accounts for the amount related to this matter. The company will now make a provision of an additional US $ 70 million for damages, interest and legal expenses, which will be shown as a one-time extraordinary expense in the first quarter of fiscal year 2027.

This case is related to a lawsuit filed in 2019 in the Federal Court of Dallas on behalf of DXC’s old company, ‘Computer Sciences Corporation’. In this, TCS was accused of hiring about 2,200 employees of another insurance company ‘Transamerica’ and using their inside information to create a competing life-insurance platform.

In 2023, a jury suggested TCS should pay $210 million for knowingly stealing trade secrets, but US District Judge Brantley Starr reduced it to $168 million, including $56 million in compensatory damages and $112 million in punitive damages. The Fifth US Circuit Court of Appeals upheld the decision in 2025. TCS argued in the Supreme Court that DXC should not have been awarded damages for ‘undue profits’ without proving actual loss, and that the amount of punitive damages was excessive. However, this was rejected.