TCS faced a legal setback in the United States as the Court of Appeals for the Fifth Circuit confirmed a $194 million penalty in its dispute with Computer Sciences Corporation (CSC), now part of DXC Technology. The decision stems from a prolonged disagreement regarding the alleged misappropriation of trade secrets.
According to a disclosure dated November 21, 2025, TCS announced that the Appeals Court upheld the US District Court’s ruling on damages but lifted the previous injunction against the company. The case has been remanded to the Northern District of Texas, Dallas Division, for a review of the injunction per the Appeals Court’s instructions.
This development follows an announcement made by TCS on June 14, 2024, where the company informed exchanges that the District Court had ruled against it, holding TCS accountable for a total of $194.2 million. This sum comprised $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.
In response to the recent ruling, TCS stated that it is exploring all available legal remedies, including seeking further review and filing an appeal with the relevant courts. The company emphasized its intention to vigorously defend its stance on the matter and assured that it would make necessary accounting provisions in its financial reports in accordance with the applicable regulations.
The legal dispute originated in 2019 when CSC initiated legal action, alleging that TCS had improperly utilized its proprietary information. CSC claimed that TCS accessed its software without authorization following the transition of several Transamerica employees to TCS, who had previously used the software under a license. CSC contended that this unauthorized access facilitated TCS in developing a competing insurance platform subsequent to securing a $2 billion contract with Transamerica.