US Grand Jury Found Tata Consultancy Services Guilty

April 19, 2016 7:00 pm | Updated 5 years ago.

 The American arm of Tata Consultancy Services (TCS) has been implicated by the US grand jury and asked to pay a fine of $940 million which comprises of $700million in punitive damages. They have been found guilty of stealing confidential documents and information from Epic Systems Corp. This intrusion had taken place when TCS was working as a consultant for Kaiser Permanente, a Californian health system that uses Epic’s software.

According to Epic Systems, some of the confidential codes used in their hospital system software have been wrongly replicated to manufacture ‘Med Mantra’, TCS’s very own hospital system software. The Tata Group has however denied the allegation and will appeal to higher courts to roll back the verdict.

The entire incident transpired when a former consultant of Kaiser Permanente (present employee of TCS) had downloaded documents from Epic’s User Web using his employee credentials. TCS did not disclose the matter to Epic as the information was not used inappropriately. Epic also failed as it should have blocked the access of a former employee but did not do so.

The concerns about data confidentiality, intellectual property infraction, and conflict of interest will always be on the rise as Indian’s IT industry continues to scale ahead. Both the parties have committed simple errors which led to a $1 billion lawsuit.


Date of Publication: April 17, 2016