TCS shares down over 3% on $940 mn fine ahead of earnings

The federal grand jury in the US State of Wisconsin ruled that TCS and Tata America International Corp must pay $240 million to Epic Systems

Shares of TCS fell by over 3% today after a US grand jury imposed a fine of $940 million on it and another Tata Group company Tata America International Corp in a trade secret lawsuit.

The stock went down by 2.93% to Rs 2,449 at BSE.

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On NSE, it slipped 3.41% to Rs 2,440.

After days of hearing, the federal grand jury in the US State of Wisconsin ruled that Tata Consultancy Services (TCS) and Tata America International Corp must pay $240 million to Epic Systems for allegedly ripping off its software.

TCS on Saturday stated there was no IP infringement in the Epic Systems case and said it plans to "defend its position vigorously in appeals to higher courts".

"While TCS respects the legal process, the jury's verdict on liability and damages was unexpected as the company believes they are unsupported by the evidence presented during the trial," TCS had said in a statement.

The lawsuit filed in October 2014 in the US District Court in Madison.

The company is due to announce its earnings later in the day.