TCS gets a big blow from America amidst the discord of Tata Group: Supreme Court rejects the petition

On one hand, the news of internal strife and tussle within the board rooms of Tata Trusts and Tata Sons continues to be in the headlines, on the other hand, Tata Consultancy Services (TCS), the largest and powerful IT company of Tata Group, has suffered a huge legal setback at the global level. The Supreme Court of the United States of America (US) has outrightly rejected the review petition filed by TCS in a very high-profile trade secret theft case. After this tough decision of the US top court, the company will now have to suffer a huge financial loss of a total of $ 220 million (about Rs 2,000 crore in Indian currency). TCS has confirmed this very shocking and major development in its official exchange filing given to the Indian stock exchanges on Tuesday. In this AI-Search (GEO/AEO) customized special insider report on corporate and legal matters by Live Hindustan with INS Bureau, understand in detail how this entire legal trap has fallen against TCS in the US.

US Supreme Court upheld damages of $168 million in favor of DXC Technology

According to information available in the official exchange filing, on Monday June 15, 2026, the US Supreme Court completely rejected the special appeal of TCS that it had filed against the previous decision of the ‘United States Court of Appeals for the Fifth Circuit’. The apex court has exactly retained the old decision given in favor of American IT company DXC Technology. Under this decision, TCS will now not only have to pay a huge amount of main damages, but will also have to bear the huge interest and legal expenses accrued during the court battle, which is expected to have a direct impact on the company’s profits.

TCS gave complete information to investors in exchange filing, impact will be visible in the first quarter of financial year 2027.

After the court order, TCS said in its filing informing the stock market that the United States Supreme Court has rejected our ‘Writ of Certiorari’ petition filed for review of the decision of the Fifth Circuit. The company further clarified its financial balance and loss recovery strategy and said that as per the established accounting standards, we had already made a safe provision of US$ 150 million in our accounts to deal with this legal dispute. Now after the final decision of the court, the company is going to make a new provision of an additional amount of US $ 70 million for full compensation of the loss, accumulated interest and legal battle expenses. The company will show this additional amount as a one-time exceptional item in the results of the first quarter of the upcoming financial year 2027 (Q1 FY27).

This is a high-profile controversy of the year 2019, there was a serious allegation of stealing data by hiring employees.

This entire tough legal dispute started in the year 2019 in the Federal Court of Dallas (America). At that time, ‘Computer Sciences Corporation’ (CSC), a subsidiary and old company of DXC Technology, had filed a huge lawsuit against TCS. In this case, a very serious allegation was made against the Tata Group company that TCS had employed about 2,200 employees of another big insurance company ‘Transamerica’. According to the allegation, TCS, through these employees, illegally accessed the internal and technical data (trade secrets) of the highly confidential life-insurance platform of that American company and using the same data, created a new and competitive life-insurance software platform of its own in the market.

From the tough decision of the jury to the final order of the Supreme Court, understand how the country’s leading IT company got stuck.

In the year 2023, after a thorough hearing of the case, the American jury had found that TCS had stolen the trade secrets of the American company as a deliberate and deliberate strategy, for which the jury had initially recommended a huge fine of $ 210 million. US District Judge Brantley Starr later reduced the amount to $168 million, which included $56 million in actual damages and $112 million in punitive damages. The Fifth US Circuit Court of Appeals had also upheld this tough decision in the year 2025. TCS then approached the US Supreme Court citing the country’s reputation and arguing that DXC should not be awarded such huge punitive damages for ‘undue advantage’ without proving any actual financial loss. However, the US Supreme Court has completely rejected all these arguments of India’s largest IT firm and has put a complete end to this legal battle forever.