US appeals court affirms $140 million penalty on TCS in Epic case

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BENGALURU: In healthcare agency Epic Methods‘ mental property case in opposition to TCS, a US Court docket of Appeals has agreed with the district court docket that the $140 million in punitive damages imposed by the latter on TCS is constitutional.

TCS had argued that the district court docket had didn’t comply with the US Court docket of Appeals’ directives when it declined to additional cut back the punitive damages award to between $10 and $25 million. “As a result of the district court docket correctly justified the $140 million punitive damages award, we affirm,” the Court docket of Appeals’ order mentioned.
Epic had alleged that TCS and Tata America had accessed its net portal with out authorisation whereas servicing a mutual consumer, after which used this data to develop their very own aggressive hospital administration system software program.

Within the evaluation within the Seventh Circuit Order in July, the court docket doc confirmed “it described how TCS staff—figuring out full nicely that they have been unauthorized to view Epic’s net portal— intentionally and repeatedly accessed and downloaded confidential data that Epic had spent years growing, after which used that data to try to compete with Epic.”
“The district court docket additionally described the steps TCS management took to hide their scheme — disciplining an inner whistleblower, failing to protect related paperwork, mendacity when questioned by Epic, after which mendacity once more when questioned underneath oath. The court docket described this conduct as “repeated, deliberate, and cynical.”
The court docket mentioned that the punitive damages have been proportional to the compensatory damages and the hurt Epic suffered. TCS had cited numerous opinions ordering decrease awards. The court docket emphasised that TCS is likely one of the largest corporations on the planet and, subsequently, solely a major punishment would have a deterrent impact. The court docket additionally expressed displeasure at TCS’s “repeated and brazen misconduct.”
An electronic mail despatched to TCS did not elicit a response.

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