On June 15, 2026, the US Supreme Court declined to intervene in a case involving Tata Consultancy Services (TCS), leaving intact a lower court judgment. TCS announced on Tuesday that it will record a one-time exceptional charge of $70 million in the first quarter of FY27 as a result.
The case stems from a lawsuit filed by Epic Systems Corporation, a healthcare software company, which accused TCS of misappropriating trade secrets related to its software. In 2023, a jury in the US District Court for the Western District of Wisconsin found TCS liable and awarded Epic $140 million in damages. TCS appealed the verdict, but the US Court of Appeals for the Federal Circuit upheld the decision in 2025.
TCS sought review by the Supreme Court, arguing that the lower courts had misinterpreted trade secret law. However, the Supreme Court denied the petition for a writ of certiorari, effectively ending TCS's legal challenge. The $70 million charge covers the remaining damages and legal costs after accounting for amounts previously set aside.
TCS stated that it remains confident in its compliance with intellectual property laws and will continue to defend its position in other ongoing litigation. The company emphasized that the charge is a one-time event and does not affect its long-term financial outlook.
