TCS falls 3% in morning trade after US jury slaps $940 million lawsuit
Tata Consultancy Services (TCS) shares fell nearly 3% in early trade on Monday after a US jury slapped a $940 million fine on TCS and Tata America International Corporation, another Tata group company in a trade secret lawsuit filed by Epic Systems in the US District Court in Madison in October 2014. In early morning trade, TCS stocks were trading down 2.94% at Rs 2,449.00 per scrip on the BSE.
TCS on the other hand vigorously defended itself and said in a statement that there was no IP infringement and the jury’s verdict on liability and damages was unexpected as the company believes they are unsupported by the evidence presented during the trial.
In a statement the company said, "The Company did not misuse or derive any benefit from downloaded documents from Epic System’s user-web portal. TCS plans to defend its position vigorously in appeals to higher courts. TCS appreciates the trial judge’s announcement from the bench that he is almost certain he will reduce the damages award."
"TCS did not misuse or benefit from any of the said information for development of its own hospital management system “Med Mantra’ which was implemented for a large hospital chain in India in 2009.The Jury verdict will not have any impact on the TCS Q4 and FY16 financial results to be announced on Monday 18 April," the company added.