Fifth Circuit Upholds $194.2 Million Ruling Against TCS

The U.S. Court of Appeals for the Fifth Circuit has upheld a major ruling against Tata Consultancy Services (TCS) in a trade-secrets lawsuit filed by Computer Sciences Corporation (CSC), now part of DXC Technology. The decision was confirmed on 21 November 2025.

What Did the Court Decide?

The appeals court confirmed the earlier judgment that TCS must pay about $194.2 million in damages. This includes both compensatory damages and exemplary (punitive) penalties.

TCS Faces $194.2 Million Court Ruling in CSC Trade-Secret Case

The District Court ruled against TCS, holding the company liable for $194.2 million. This includes $56.15 million in compensatory damages, $112.3 million in exemplary damages, and $25.77 million in prejudgment interest as of June 13, 2024.

The case began in 2019 after CSC accused TCS of misusing its trade secrets. CSC alleged that TCS obtained improper access to its software when several Transamerica employees, who had licensed the software, moved to TCS during a $2 billion deal—allowing TCS to build a competing insurance platform.

Why Was TCS Penalized?

CSC accused TCS of misusing its proprietary software and confidential information. This material was originally licensed to Transamerica, and CSC claimed that TCS used it beyond the allowed scope.

What Did the Jury Find?

The jury had previously ruled that TCS’s actions were malicious and willful. Based on this, the court approved higher exemplary damages.

How Did the Appeals Court Respond?

The Fifth Circuit agreed that the lower court correctly interpreted CSC’s contract. The court rejected TCS’s argument that it had broader rights to use the software and related information.

What Happens Next?

TCS has said it is reviewing the judgment and considering further legal options, including a possible appeal. The company also stated it will make the necessary provisions in its financial statements, as required by accounting standards.

Key Questions Answered

1. Did TCS lose the appeal?

Yes. The Fifth Circuit upheld the previous ruling against TCS.

2. How much does TCS have to pay?

TCS must pay around $194.2 million in total damages.

3. Why was TCS fined?

TCS was found to have misused trade secrets and proprietary material owned by CSC/DXC.

4. Can TCS still appeal?

Yes. TCS can still seek further review, though the appeals court ruling strengthens CSC’s position.

5. What does this mean for TCS?

TCS will need to account for the confirmed damages and may face ongoing legal scrutiny as the case continues.