TCS To Set Aside USD 70 Mn More After US Supreme Court Declines Review in CSC-DXC Legal Dispute

New Delhi: Tata Consultancy Services on Tuesday said it would make provision of additional USD 70 million in the first quarter of fiscal 2027 after the US Supreme Court declined to review a lower court ruling in a legal dispute with Computer Sciences Corporation, now part of DXC Technology.

TCS, in the BSE filing, said it has already provided USD 150 million for the matter in its books of accounts in accordance with applicable accounting standards.

The company “will make necessary provision now for the incremental amount of USD 70 million towards damages, interest and legal cost, as a one-time exceptional expense, in Q1 FY2027”.

TCS had disclosed the litigation in earlier exchange filings in June 2024 and November 2025.

Providing an update over the suit filed by Computer Sciences Corporation/DXC Technology Company, TCS, on Tuesday, informed that US Supreme Court has declined to review a lower court ruling in a lawsuit brought by Computer Sciences Corporation.

“In continuation of our earlier communication…dated June 14, 2024 and…dated November 22, 2025, we wish to inform you that the United States Supreme Court has denied our petition for a writ of certiorari to review the judgment of the United States Court of Appeals for the Fifth Circuit on June 15, 2026, in the above matter,” it said.

Earlier, TCS had faced a legal setback after the US Court of Appeals for the Fifth Circuit upheld a USD 194.2 million damages award and ruled in favour of Computer Sciences Corporation in a years-long trade secrets case.

Back in June 2024, TCS had updated BSE about receipt of an “adverse judgement” passed by United States District Court, Northern District of Texas, Dallas Division.

The company had, at that time, stated it has strong arguments in the matter and that it intends to defend its position through review petition/appeal to the appropriate court.

It had informed that in a suit by Computer Sciences Corporation (CSC)/DXC Technology against TCS, alleging misappropriation of its trade secrets, the court had ordered that the company is liable to CSC for USD 56.1 million in compensatory damages and USD 112.3 million in exemplary damages.

As per that filing, the court also assessed that the company is liable for USD 25.7 million in prejudgment interest through June 13, 2024.

“Under the terms of the Court orders, the company is liable for misappropriation of trade secrets under the Defend Trade Secrets Act of 2016 (DTSA),” it said.

Another filing/update followed in November 2025 where TCS informed the United States Court of Appeals for the Fifth Circuit has issued an adverse ruling in the matter and confirmed the District Court decision on damages.

“However, the Court has vacated the previously granted injunction and directed the United States District Court, Northern District of Texas, Dallas Division, to reassess the injunction order basis direction of the Appeals Court,” the filing, in late 2025, had mentioned.

At that point, the company said it is evaluating various options, including review and appeal before the appropriate courts, and intends to vigorously defend its position and that necessary provisions related to this matter will be duly made in the books of accounts and financial statements in accordance with applicable accounting standards.

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