TCS to Take $70 Million Charge After U.S. Supreme Court Rejects Appeal in Trade Secrets Case

Tata Consultancy Services (TCS) will record a one-time exceptional charge of $70 million after the U.S. Supreme Court declined to hear its appeal in a long-running trade secrets lawsuit. The decision leaves intact a $168 million damages award in favor of DXC Technology, increasing TCS’s total financial exposure in the case to approximately $220 million. The company said the additional provision will cover damages, interest, and legal expenses in the first quarter of FY2027.

The dispute originated from a 2019 lawsuit filed by Computer Sciences Corporation, a predecessor of DXC Technology, in a Dallas federal court. The company accused TCS of hiring around 2,200 employees from insurance firm Transamerica and using their internal knowledge and access to develop a competing life-insurance software platform. A jury initially awarded $210 million in damages in 2023 for willful trade secret misappropriation.

However, U.S. District Judge Brantley Starr later reduced the award to $168 million, comprising $56 million in compensatory damages and $112 million in punitive damages. The ruling was upheld by the Fifth U.S. Circuit Court of Appeals in 2025, and the Supreme Court’s refusal to review the case effectively ends TCS’s legal challenge. Despite the setback, the company had previously set aside $150 million for the matter and reported a net profit of 137.18 billion rupees ($1.45 billion) in the latest quarter.

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