<ul><li><keyword id="6357585" type="COMPANY" weightage="20" keywordseo="tata-consultancy-services">Tata Consultancy Services</keyword> (TCS) may not have to dole out $420 million to <keyword id="1378726" type="COMPANY" weightage="20" keywordseo="Epic-Systems">Epic Systems</keyword> with the Court of Appeals in Chicago ruling that the <keyword id="2431919" type="PERSON" weightage="20" keywordseo="punitive-damages">punitive damages</keyword> in the trade secrets case are ‘excessive’. </li><li>The Indian IT giant will still have to pay $140 million in compensatory damages. </li><li>According to the US court, $240 million in punitive damages should be reassessed. </li></ul>Tata Consultancy Services (TCS) claims that there is no evidence of information misuse, and continues to fight against the verdict of the trade secrets case against Epic Systems in the US. After already having halved the damages to be paid, from $940 million to $420 million, the Court of Appeals in Chicago has ruled even that may be ‘excessive’. TCS will still have to pay the full $140 million in compensatory damages, but the $280 million in punitive damages should be reassessed, according to the US court. “TCS is exploring the options available to it as it believes that there is no evidence of misuse of EPIC information by TCS,” the company <a href="https://www.bseindia.com/xml-data/corpfiling/AttachLive/a4ec5d26-76e2-4fc6-b0ad-a9c58d6ce5ff.pdf">said in its filing</a> with the stock exchange in India. The $940 million verdict against TCS The case goes back to 2014 when Epic Systems accused TCS of stealing its intellectual property. According to the US company, TCS was hired to test the healthcare management system implementation of Kaiser Permanente (KP) — a healthcare service provider — and was only given access to consultants. Epic Systems alleges that TCS instead stole over 6,000 documents using KP employee’s credentials and created its product. In 2016, a jury found TCS guilty and awarded Epic Systems damages worth $940 million. A year later, a court in Wisconsin brought the damages down to $420 million to comply with the existing limit on punitive damages for such cases. TCS tried to appeal the $420 million verdict then and there, but the judge upheld the ruling following which the Indian major then filed an appeal in Chicago. “TCS will vigorously defend its position before the relevant court,” said the company. SEE ALSO: <a href="https://www.businessinsider.in/tech/apps/news/twitter-removal-of-prashant-bhushan-tweets-opposed-by-internet-rights-body/articleshow/77667757.cms">Twitter's decision to 'proactively' remove Prashant Bhushan's tweets opposed by internet rights body</a> <a href="https://www.businessinsider.in/careers/news/tcs-hiring-again-with-5-employees-to-return-to-offices/articleshow/76887172.cms">TCS to kickstart lateral hiring and bring back 5% of its employees to offices</a> <a href="https://www.businessinsider.in/defense/news/tcs-tech-mahindra-hcl-tech-and-wipro-could-gain-from/articleshow/77478306.cms">TCS, HCL, Wipro, Tech Mahindra could help develop India's defence technology ecosystem</a>

TCS' $420 million punitive damages ruled 'excessive' by US court — to be 'reassessed' for a second time

<ul><li>Tata Consultancy Services, India’s second most valuable company by market cap after <keyword id="6355199" type="COMPANY" weightage="20" keywordseo="reliance-industries">Reliance Industries</keyword>, just got hit with its second lawsuit in five years for alleged theft of “trade secrets”. </li><li>The company, which is the IT services arm of Tata, has been accused by the US-based Computer Services Corp (<keyword id="172156" type="CITY" weightage="20" keywordseo="CSC">CSC</keyword>) of improperly accessing the latter’s <keyword id="188405" type="ENTERTAINMENT" weightage="20" keywordseo="Source-code">source code</keyword> to develop an insurance platform. </li><li><keyword id="6357150" type="ORGANIZATION" weightage="20" keywordseo="tcs">TCS</keyword> was building the insurance platform in question for <keyword id="1884595" type="COMPANY" weightage="20" keywordseo="Transamerica">TransAmerica</keyword>, from which it received a $2 billion contract in January last year. That was, incidentally, TCS’s largest contract ever.</li></ul>Tata Consultancy Services, India’s <a href="https://www.google.com/search?q=tata+consultancy+services+market+cap&amp;rlz=1C1GCEU_enIN820IN820&amp;oq=tata+consultancy+services+market+ca&amp;aqs=chrome.0.0j69i57j0l4.7440j0j4&amp;sourceid=chrome&amp;ie=UTF-8">second most valuable company</a> by market cap after Reliance Industries, just got hit with its second lawsuit in five years for alleged theft of <a href="https://economictimes.indiatimes.com/tech/ites/tata-consultancy-services-faces-new-law-suit-over-trade-secret-theft/articleshow/69106238.cms">“trade secrets”</a>. The company, which is the IT services arm of Tata, has been accused by the US-based Computer Services Corp (CSC) of improperly accessing the latter’s source code to develop an insurance platform. In a response to ET, a TCS spokesperson said that the company’s legal team would respond to the allegations after reviewing them and that TCS would “strongly defend its position before the court”. TCS was building the insurance platform in question for TransAmerica, from which it received a <a href="https://www.tcs.com/transamerica-awards-tcs-multi-year-contract-third-party-administration">$2 billion contract</a> in January last year. That was, incidentally, TCS’s largest contract ever. CSC had licensed its Vantage and CyberLife softwares to a subsidiary of TransAmerica, Money Services Inc, for the administration of insurance and annuity products. The suit reportedly alleges that TCS misappropriated the code of these softwares, specifically the code which calculates the rate of return on products, to develop a platform for TransAmerica. Legal proceedings for the case will take place in the US state of Texas. While it is unclear the amount of punitive damages that CSC is seeking, a previous lawsuit filed against TCS might give an indication of the trouble the IT services major is in. In 2014, <keyword id="1378726" type="COMPANY" weightage="20" keywordseo="Epic-Systems">Epic Systems</keyword>, another US-based software provider, accused TCS <a href="https://economictimes.indiatimes.com/tech/ites/tata-consultancy-services-420-million-trade-secrets-case-moves-to-higher-court/articleshow/68554532.cms">of stealing its intellectual property</a>. The suit had alleged that TCS employees had stolen 6000 documents pertain to Epic’s methods of system development from a client that licensed the latter’s software - Kaiser Permanente. After two years of legal wrangling, TCS was asked to pay Epic $940 million worth of damages - which was later reduced <a href="https://www.tcs.com/update-epic-system">to $420 million </a>based on caps for such cases. TCS is currently in the process of appealing against <a href="https://economictimes.indiatimes.com/tech/ites/tata-consultancy-services-420-million-trade-secrets-case-moves-to-higher-court/articleshow/68554532.cms">the $420 million payment</a>. At the end of March 2019, the appeal was transferred to a federal appeals court in the US. The latest lawsuit didn’t seem to have much of an effect on TCS’s shares, which stabilised after <a href="https://www.google.com/search?q=tcs+share+price&amp;rlz=1C1GCEU_enIN820IN820&amp;oq=TCS+share+price&amp;aqs=chrome.0.0l6.1971j1j7&amp;sourceid=chrome&amp;ie=UTF-8">a 1% drop</a> this morning. SEE ALSO: <a href="https://www.businessinsider.in/india-post-upgraded-by-tcs-in-hopes-of-cutting-losses/articleshow/68989343.cms">The company that transformed India's passport offices is also working on post offices</a> <a href="https://www.businessinsider.in/tcs-wipro-and-hcl-are-among-the-worlds-most-valued-it-brands/articleshow/67670849.cms">TCS is now the world’s third most valued IT service brand</a>

One of India’s most valuable companies has been hit with a second lawsuit for improper use’ of a software provider’s source code

<ul><li><keyword id="6357585" type="COMPANY" weightage="20" keywordseo="tata-consultancy-services">Tata Consultancy Services</keyword> (TCS) board of directors has approved the buyback of over 5 million equity shares worth ₹16,000 crore at the value of ₹3,000 each. </li><li>The company posted an adjusted profit of 20.3% in the second quarter with a jump of 4.8% in revenue (constant currency) sequentially.</li><li>TCS also announced a second interim dividend of ₹12 per ₹1 equity share.</li><li><a href="https://www.businessinsider.in/">Check out all the latest news and updates on Business Insider.</a></li></ul>Tata Consultancy Services (TCS) has delivered on all parameters. It put up a strong show in the second quarter, led by strong revenue growth and margin expansion. Adjusted profit has risen 20% over last quarter, which excludes legal claim provisions amounting to around $165 million in TCS’ ongoing case against <a href="https://www.businessinsider.in/business/corporates/news/tcs-420-million-punitive-damages-ruled-excessive-by-us-court-to-be-reassessed-for-a-second-time/articleshow/77670645.cms">Epic Systems</a>. The overall profit after tax stands at ₹7,475 crore, up 6.7% over the last three months. India’s largest IT services company has also logged in revenue growth of 4.8% sequentially in constant currency. Consolidated revenues grew by 4.7% to ₹40,135 crore on a quarterly basis, while strong deal closures amounted to $8.6 billion. “The $8.6 billion also includes $2.5 billion with Phoenix systems, which was announced a few quarters back, but the contract got executed this quarter. Excluding that, it’s still a very herding $6.1 billion,” said TCS CEO Rajesh Gopinathan. Margins remain strong, expanding by 2.2% yearly to 26.2% this quarter. "What we are witnessing right now is the start of the first phase of a multi-year technology transformation cycle,” said TCS CEO Rajesh Gopinathan. TCS’ attrition is also at an all-time low of 8.9% as it adds 9,964 employees to its roster and plans to start rolling out salary hikes from October 1. Buyback, dividend and a change of guard Aside from the financials, the company also announced a mega buyback. The board of directors has approved the buyback of 53 million equity shares worth ₹16,000 crore. It amounts to around 1.42% of the total paid-up equity capital at ₹3,000 per share. The company will also be doling out ₹12 per ₹1 equity share as a second interim dividend for shareholders. There’s also a change of guard afoot with TCS CFO V Ramakrishnan set to step down on April 30, 2021. The company has chosen Samir Seksaria, who is currently the vice-president of finance, as his successor. Seksaria has been with the company since 1991 and has held various positions within the organisation in business consulting and finance in that time. TCS continues its winning streak Analysts expected a good quarter for the company after it wrapped up around ten new deals over the last three months. The numbers are also a big step up from the previous quarter when the company posted a dip of 6.3% in its revenue and profit took a hit of 13%. TCS recently became the second Indian company to cross the <a href="https://www.businessinsider.in/stock-market/news/tcs-shares-hit-record-high-board-to-mull-over-share-buyback-and-earnings-on-october-7/articleshow/78486980.cms">₹10 lakh crore barrier</a> after Mukesh Ambani’s Reliance Industries that has been on an <a href="https://www.businessinsider.in/stock-market/news/reliance-share-price-soars-as-mukesh-ambani-continues-with-his-funding-blitzkrieg-for-retail-venture/articleshow/78528841.cms">investment hot streak</a>. TCS new deal wins in the second quarter: <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Client </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sector </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Forth ports </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Travel </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TPT South Africa </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Travel </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tryg </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">BFSI </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Emirate NBD </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">BFSI </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Vistaprint </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Manufacturing </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Valiant Group </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Manufacturing </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Coop Sweden </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Retail </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Morrisons </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Retail </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Maurices </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Retail </td></tr></tbody></table> SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/sbi-new-chief-dinesh-khara-shares-his-stance-on-restructuring-capital-raising-hiring-and-more/articleshow/78534234.cms">SBI’s new chief Dinesh Khara shares his stance on restructuring, capital raising, hiring, and more</a> <a href="https://www.businessinsider.in/policy/economy/three-new-natural-gas-marketing-reforms-introduced-by-union-cabinet-to-reduce-dependence-on-imports/articleshow/78532983.cms">Three new natural gas marketing reforms introduced by Union Cabinet to reduce dependence on imports</a> <a href="https://www.businessinsider.in/careers/news/new-h-1b-visa-rules-make-it-more-expensive-and-harder-to-hire-workers-from-india-but-they-may-not-hold-ground/articleshow/78531040.cms">New H-1B visa rules make it more expensive and harder to hire workers from India — but they may not hold ground</a>

TCS announces ₹16,000 crore buyback — strong show in Q2 with 7% rise in profit, margins near two-year high

<ul><li>Tata Consultancy Services (TCS) is now worth more than ₹10 trillion after the company's share price jumped by more than 7%.</li><li>The rally comes after the company announced that its board of directors will be considering a proposal to buyback equity shares at the earnings meeting this week.</li><li>TCS also said that ₹1,218 will appear as an ‘exceptional item’ on its balance sheets in reference to its ongoing legal dispute with EPIC Systems in an earlier filing.</li></ul>Tata Consultancy Services (TCS) market cap is at a record high with its valuation hitting ₹10.16 trillion after the company's shared rallied by more than 7% today. The Indian IT service behemoth's earnings are just around the corner. At the board meeting this week, among other things, the company’s directors will also consider a proposal about the <a href="https://www.bseindia.com/xml-data/corpfiling/AttachLive/93BCBE28-2FD3-492A-82AC-C4A758576A6E-072450.pdf">buyback of equity shares.</a> <div type="image" title="TCS share price 1 (1)" msid="78493313" hostid="261" caption="&amp;lt;p&amp;gt;TCS share price over the last one month&amp;lt;/p&amp;gt;"></div> Even though TCS has not revealed any buyback details, its share price reached a new 52-week high, hitting ₹2,728.95. What is a share buyback? A buyback allows a company to buy back its shares from existing shareholders, usually at a price higher than what is prevailing in the market. It’s a way for companies to invest in themselves. The last time TCS went for a share buyback programme was in 2018 for a whopping ₹16,000 crore. It bought back equity shares at ₹2,100 a piece and garnered over 7.60 crore shares. At the time, the company said the mega buyback offer was a part of its long-term capital allocation policy of returning excess cash to shareholders. In an earlier filing, TCS also revealed that ₹1,218 will appear as an ‘exceptional item’ on its balance sheets in reference to its ongoing <a href="https://www.businessinsider.in/business/corporates/news/tcs-420-million-punitive-damages-ruled-excessive-by-us-court-to-be-reassessed-for-a-second-time/articleshow/77670645.cms">legal dispute with EPIC Systems</a>. It took TCS less than one month to earn another ₹1 lakh crore company Last month, TCS was the <a href="https://www.businessinsider.in/stock-market/news/after-reliance-tcs-becomes-second-indian-firm-to-cross-9-lakh-crore-market-valuation/articleshow/78104482.cms">second Indian company to cross the ₹9 lakh crore threshold</a> after Mukesh Ambani’s Reliance Retail. In less than a month, it has now crossed the ₹10 lakh crore marker as well. This year, the company’s stock has gained 25% so far despite the bloodbath caused by the impact of the coronavirus pandemic and associated lockdowns. <div type="image" title="TCS share price 2 (1)" msid="78493386" hostid="261" caption="&amp;lt;p&amp;gt;TCS&amp;#39; share price since January&amp;lt;/p&amp;gt;"></div> SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/indusind-icici-rbl-axis-hdfc-kotak-mahindra-bank-share-price-and-other-stocks-surge-on-loan-moratorium-case/articleshow/78486360.cms">Bank stocks surge after government agrees to waive off interest on loans up to ₹2 crore</a> <a href="https://www.businessinsider.in/tech/news/vijay-shekhar-sharma-fires-the-shots-paytm-launches-its-own-android-mini-app-store-to-take-on-google/articleshow/78484994.cms">Vijay Shekhar Sharma fires shots – Paytm launches its own Android mini-app store to take on Google</a> <a href="https://www.businessinsider.in/defense/news/next-round-of-india-china-corps-commander-talks-scheduled-for-october-12/articleshow/78485609.cms">Next round of India-China Corps Commander talks scheduled for October 12</a>

TCS' value crosses ₹10 trillion after share price rallies more than 7% ahead of earnings

<img class="gwt-Image" src="/photo/51895202.cms" /> 
 As the top management of <keyword id="6357585" type="CITY" weightage="100" keywordseo="Tata-Consultancy-Services">Tata Consultancy Services</keyword> (<keyword id="6357150" type="CITY" weightage="100" keywordseo="TCS">TCS</keyword>) declared the quarterly results on Monday evening, everyone was expecting a word or two about the penalty that it is facing from a US jury. However, the management chose to stay silent on this matter, thereby strengthening the rumors that there won’t be much growth in FY17 earnings. 
 
As per reports, TCS has been slapped with a hefty fine of over $940 million in a lawsuit filed by Epic Systems. Considering that the net profit it reported in the March quarter was $936 million, one can imagine the condition that this fine would bring the IT giant to. 
 
Also, this has come at a time when the company's growth (7.1%) has already slowed down as compared to its peer Infosys (9.1%), and that too for the first time since FY10. 
 
However, on a brighter side, TCS has added three clients with $100 million deal size each, along with eight clients with at least $50 million of billing each in the quarter, which makes the investors hopeful about revenue growth. 
 
<a href="http://www.moneyindices.com/admin/upload/1772163623.jpg">Image source</a>

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TCS' $420 million punitive damages ruled 'excessive' by US court — to be 'reassessed' for a second time

Prabhjote Gill

One of India’s most valuable companies has been hit with a second lawsuit for improper use’ of a software provider’s source code

Dilsher Dhillon

TCS announces ₹16,000 crore buyback — strong show in Q2 with 7% rise in profit, margins near two-year high

Prabhjote Gill

TCS' value crosses ₹10 trillion after share price rallies more than 7% ahead of earnings

Prabhjote Gill

TCS stays mum on US fine, strengthens rumors about growth uncertainty in FY 17

BI India Bureau