Damages Fee Reduced to $140 Million in Trade Secret Dispute Between Epic Systems and Tata Consultancy Services

    On August 20, 2020, the U.S. Court of Appeals for the Seventh Circuit upheld a compensatory damages award in the trade secret misappropriation matter between Epic Systems Corporation and Tata Consultancy Services, but found that the $280 million punitive damages award was “constitutionally excessive” and remanded the case to the U.S. District Court for the Western District of Wisconsin with instructions to reduce the award.

    The dispute began in 2014, when Epic Systems alleged that Tata consultants used a fake user ID to illegally download over 6,000 documents and 1,600 files containing “detailed information on features and functionalities” of its healthcare records software.

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