On August 20, 2020, the United States Court of Appeals for the Seventh Circuit upheld a jury’s $140 million compensatory damages award in Epic Systems Corp. v. Tata Consultancy Services Ltd. The Seventh Circuit held that there was enough evidence to support the jury’s conclusion that Tata Consultancy Services Ltd. (TCS) stole Epic Systems Corp.’s (Epic) confidential information, including trade secrets, and in doing so, avoided incurring significant research and development costs. Although the jury awarded Epic an additional $700 million in punitive damages, the Seventh Circuit ultimately reduced that award to $140 million.
Epic sued TCS in the United States District Court for the Western District of Wisconsin, alleging that “TCS used fraudulent means to access and steal Epic’s trade secrets and other confidential information.” Epic asserted that TCS “downloaded, from 2012 to 2014, thousands of documents” and used the confidential information contained in those documents to develop a “spreadsheet comparing TCS’s health-record software” with Epic software. TCS’s internal communications showed that “TCS used this spreadsheet in an attempt to enter the United States health-record-software market, steal Epic’s client, and address key gaps” found in TCS software.