In a development that could create some impact on its third-quarter numbers, Tata Consultancy Services (TCS) on Tuesday said it will make a provision of $125 million related to a trade secret lawsuit filed by US-based Epic Systems.

This came after the United States Supreme Court rejected its appeal against a punitive damages order passed by a district court earlier.

The District Court of Wisconsin has awarded $140 million damages in favour of Epic Systems Corporation which alleged that India’s largest IT services firm had stolen its confidential information.

The lawsuit was reportedly filed in 2014. In 2016, TCS said it did not misuse or benefit from any of the said information for creating its own hospital management system “Med Mantra’ which was implemented for a large chain in India in 2009.

"In the EPIC Systems Corporation matter, the United States Supreme Court on November 20, 2023, rejected the company’s petition to file an appeal against the orders passed by the US Court of Appeals, 7th Circuit, which confirmed the punitive damages award of $140 million passed by the District Court of Wisconsin," TCS said in a filing to the stock exchanges after market hours.

TCS added that following the US Supreme Court order, the company intends to make the balance provision of approximately $125 million in its statements as an exceptional item, for Q3 and nine months ending December 31, 2023.