Stock Markets June 15, 2026 09:45 AM

Supreme Court Declines Tata's Appeal in $168 Million Trade Secrets Ruling

High court refuses to review award to DXC Technology stemming from alleged theft of life-insurance software secrets

By Derek Hwang
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The U.S. Supreme Court declined to take up an appeal by India-based Tata Consultancy Services challenging a combined $168 million judgment awarded to DXC Technology. The dispute stems from allegations that Tata used access to proprietary life-insurance software and proprietary knowledge after hiring Transamerica personnel to build a competing platform. Lower courts reduced and then upheld a jury-backed award, which was based entirely on unjust enrichment under U.S. trade secrets law.

Supreme Court Declines Tata's Appeal in $168 Million Trade Secrets Ruling
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Key Points

  • The Supreme Court declined to review Tata Consultancy Services' appeal of a $168 million judgment in favor of DXC Technology.
  • The award was originally based on a 2023 advisory jury verdict and was reduced by a district judge to $56 million in compensatory and $112 million in punitive damages before being upheld by the 5th U.S. Circuit Court of Appeals.
  • The damages awarded to DXC were founded solely on unjust enrichment under U.S. trade secrets law; Tata contested both the availability of unjust enrichment without proven plaintiff losses and the size of punitive damages.

The U.S. Supreme Court on Monday turned away an attempt by Tata Consultancy Services to overturn a $168 million judgment in favor of DXC Technology in a trade secrets dispute tied to life-insurance software.

The litigation traces back to a 2019 lawsuit filed by DXC's predecessor, Computer Sciences Corp. (CSC), in federal court in Dallas. CSC said it had licensed its software to Transamerica in the 1990s and later accused Tata of hiring roughly 2,200 Transamerica employees and using their access and knowledge of CSC's proprietary software to construct a rival life-insurance platform.

Tata denied the allegations throughout the litigation, telling the courts that the information at issue was not secret and that any access to the software had been lawful. A jury in 2023 returned an advisory verdict - a nonbinding finding provided to a judge - that Tata had willfully misappropriated DXC's trade secrets and should pay $210 million.

U.S. District Judge Brantley Starr subsequently reduced the amount to $168 million in 2024, splitting the award into $56 million in compensatory damages and $112 million in punitive damages. The 5th U.S. Circuit Court of Appeals, sitting in New Orleans, reviewed that reduction and affirmed the district court's calculation in 2025.

Under U.S. trade secrets law, courts may order damages that address both a plaintiff's actual losses and a defendant's unjust enrichment from wrongdoing. In this case, the award granted to DXC was grounded entirely on unjust enrichment rather than payments tied to provable losses by the plaintiff.

In filings to the Supreme Court, Tata argued that an unjust enrichment award should not stand without a showing that the plaintiff also suffered actual losses. Tata also urged that the size of the punitive damages was excessive. DXC opposed further review, telling the high court that the appeals court applied established law to the facts and that the matter did not warrant additional examination.

With the Supreme Court's refusal to hear the appeal, the lower courts' rulings remain in place, leaving the $168 million award intact as the final judgment in the case unless other procedural options are pursued that are not referenced in the filings before the high court.


Legal and market context

The decision leaves intact a significant judgment tied to alleged misappropriation of proprietary technology used in the life-insurance sector. The litigation involved corporate licensing arrangements dating to the 1990s, a mass hiring event involving Transamerica personnel, and multiple levels of judicial scrutiny including jury findings, a district court adjustment of damages, and an appeals court affirmation prior to the Supreme Court's denial of review.

Risks

  • Legal uncertainty for defendants in trade secrets cases where courts award unjust enrichment without a parallel showing of the plaintiff's actual losses - impacts legal services and technology sectors.
  • Potential reputational and financial exposure for companies involved in large-scale employee transitions between vendors and clients, particularly in the software and insurance technology sectors.
  • Ongoing litigation risks as parties may continue to pursue procedural avenues despite the Supreme Court's refusal to grant review, affecting corporate legal budgets and investor assessments in affected firms.

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