TCS To Record $70 Million Charge After US Supreme Court Rejects Trade Secrets Appeal

Tata Consultancy Services will take a one-time exceptional charge of $70 million in the first quarter of FY27 following the US Supreme Court's rejection of its appeal in a long-running trade secrets case involving DXC Technology. The decision upholds a lower court ruling that awarded damages to DXC, effectively concluding the legal proceedings. TCS's total exposure in the case now stands at $220 million, with the company having already set aside $150 million earlier.

The dispute traces back to 2019 when Computer Sciences Corporation (now DXC Technology) sued TCS in Dallas federal court, alleging the company misused confidential information obtained through employees recruited from Transamerica to develop a competing life insurance administration platform. A jury found TCS guilty of wilful misappropriation of trade secrets in 2023 and recommended $210 million in damages, later reduced to $168 million by a US district judge. The 5th US Circuit Court of Appeals upheld this ruling in 2025.