U.S. Legal Blow Costs TCS Another $70M

NEW DELHI-IT services giant Tata Consultancy Services (TCS) said on June 16 that it will set aside an additional $70 million to cover damages, interest and legal expenses after the US Supreme Court declined to hear its appeal in a long-running case involving US technology company Computer Sciences Corporation (CSC), now known as DXC Technology.

In a regulatory filing, TCS said the Supreme Court declined to review a previous ruling by the US Court of Appeals for the Fifth Circuit.

The decision is another setback for TCS in its legal battle with DXC Technology.

The company said it had already set aside $150 million for the case in its accounts. Following the latest court decision, it will now make an additional provision of $70 million as a one-time expense in the first quarter of FY2026-27.

TCS had previously informed investors about developments in the case through regulatory filings in June 2024 and November 2025.

Earlier, the Fifth Circuit upheld a $194.2 million damages award and ruled in favor of CSC in the long-running trade secrets dispute.

TCS did not provide any further details on the financial impact beyond the additional $70 million provision that will be recorded in the June quarter. (IANS)