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Supreme Court Declines Review, Leaving $168 Million Trade‑Secrets Award Against TCS Intact

The decision forces TCS to book a one-time $70 million charge that raises its total exposure in the case to about $220 million.

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TCS has denied the allegations, arguing through the proceedings that the information in question was not confidential and that it had accessed the software lawfully.
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Overview

  • The U.S. Supreme Court on June 15 declined to hear Tata Consultancy Services’ appeal, leaving in place a lower‑court judgment that requires payment of $168 million to DXC Technology.
  • TCS said it will record a one-time exceptional charge of $70 million in Q1 FY2027 and that the company had already provisioned $150 million, bringing total reserves tied to the case to roughly $220 million.
  • The dispute began with a 2019 Dallas lawsuit by CSC/DXC that accused TCS of hiring about 2,200 Transamerica employees and using their access to build a rival life‑insurance platform.
  • A 2023 jury issued a nonbinding advisory verdict for $210 million for willful misappropriation, and Judge Brantley Starr cut the award to $168 million — $56 million in compensatory damages and $112 million in punitive damages — a ruling the Fifth Circuit affirmed in 2025.
  • TCS has argued the award was improper because DXC relied on 'unjust enrichment' without showing actual losses and that punitive damages were excessive, while DXC says the appeals courts correctly applied settled law; the case’s close may still carry reputational risks for TCS and client trust in the IT services sector.