In upcoming Q2 and H1 results.
Tata Consultancy Services announced that in the matter related to EPIC Systems Corporation, the company would be providing Rs 1,218 crore as exceptional item, in the financial results for the three and six months ended 30 September 2020, to be announced on 07 October 2020.On 20 August 2020, the US Court of Appeals, 7th Circuit, Chicago, returned a verdict on the appeal filed by TCS, reducing the damages award. The Court held that the punitive damages award of $280 million is constitutionally excessive, vacated the punitive damages award and directed the Trial Court to reassess the punitive damages. The Court upheld the compensatory damages award of $140 million.
TCS is legally advised that it has the correct and the strongest possible arguments in its favour and the Order and reduced damages are not supported by facts presented during the Trial. In September 2020, TCS has filed petition seeking re-hearing on both compensatory and punitive damages.
EPIC has also filed petition seeking re-hearing on decision of the Appeals Court invalidating award of punitive damages exceeding the amount of compensatory damages.
The provision in the books for legal claim is being made as a matter of prudence.
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