TCS has suffered a legal setback in the United States after the Court of Appeals for the Fifth Circuit upheld a penalty of $194 million in its case with Computer Sciences Corporation (CSC), now part of DXC Technology. The ruling is linked to a long-running dispute over the alleged misuse of trade secrets.
In a disclosure dated November 21, 2025, TCS said the Appeals Court has upheld the US District Court’s decision on damages. However, the court has vacated the earlier injunction that had been issued against the company. The matter has now been sent back to the Northern District of Texas, Dallas Division, which has been asked to review the injunction as per the directions of the Appeals Court.
This development comes after an update shared by the company on June 14, 2024. At that time, TCS had told the exchanges that the District Court had ruled against it and held it liable for a total of $194.2 million. This amount included $56,151,583 in compensatory damages, $112,303,166 in exemplary damages, and $25,773,576.60 in prejudgment interest calculated until June 13, 2024.
Following the latest ruling, TCS said it is studying all legal options that are open to it. This includes seeking further review and filing an appeal before the relevant courts. The company said it will “vigorously defend” its position in the matter. It also said that it will make the required accounting provisions in its financial statements in line with the applicable standards.
The case began in 2019, when CSC filed a lawsuit claiming that TCS had misused its trade secrets. CSC alleged that TCS gained improper access to its software after several Transamerica employees moved to TCS. These employees had earlier worked with the software under a licence. CSC further said that this access helped TCS build a competing insurance platform after it signed a $2 billion deal with Transamerica.
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