Epic and TCS lawsuit (update)

• The US Court of Appeals, 7th Circuit, Chicago, held that the punitive damages award of $280 million is constitutionally excessive.

• The court however upheld the compensatory damages award of $140 million, according to an exchange filing by TCS, India’s largest software services provider.

• The US firm's lawsuit dates back to 2014. The Epic Systems had accused TCS stealing its intellectual property.

Background

Epic had claimed that TCS employees were brought on as consultants to a Kaiser Permanente Sunnyside Medical Center in Portland to help implement an Epic software there and took more than 6,000 documents containing Epic’s development information by creating a fake user account. The user pretended to be an employee of the hospital and did not disclose that he was a consultant, the lawsuit said.