TCS records Rs 2,809 crore as contingent liability for Epic law suit

BENGALURU: Tata Consultancy Services said it has made a $440 million letter of credit available to US software firm Epic Systems, which won a trade secrets theft case against the IT firm, to stay the execution of the award pending post-judgement proceedings and appeal.

Epic had filed the law suit against TCS in 2014 alleging that the company had stolen its intellectual property. In 2016, Epic won a jury award of $940 million. In 2017, the Wisconsin court judge lowered the amount of the award to $420 million to comply with caps on punitive damages in such cases.

“During the current quarter, pursuant to US court procedures, a letter of credit has been made available to Epic for Rs 2,809 crore ($440 mln) as financial security inorder to stay execution of the judgement pending post-judgement proceedings and appeal. Accordingly, an amount of Rs 2,809 crore is disclosed as contingent liability,” the company said in an explanatory note to its third-quarter results.


TCS said it still intended to appeal the reduced award.