TCS to record $70 million charge after Supreme Court denial

Tata Consultancy Services will incur a one-time exceptional charge of $70 million in the first quarter of its 2027 fiscal year after the U.S. Supreme Court declined to hear its appeal in a long-running trade secrets case. The decision, announced by the company in a regulatory filing on Tuesday, June 16, 2026, brings the legal dispute with DXC Technology to a close.

The Supreme Court’s denial of TCS’s petition for review leaves in place a lower court ruling that upheld a $168 million damages award for DXC. TCS stated it had already set aside $150 million for the litigation and will now provision the remaining $70 million to cover damages, accrued interest, and legal costs. The company’s total financial exposure in the case is now $220 million.

The dispute originated from a 2019 lawsuit filed by Computer Sciences Corporation, now part of DXC Technology. The lawsuit alleged that TCS hired approximately 2,200 employees from insurance company Transamerica and used their access to proprietary life-insurance software and confidential information to develop a competing platform. TCS has consistently denied the allegations, maintaining that the information was not secret and that its...