Cognizant Accuses Infosys of Stealing Trade Secrets in Ongoing Legal Battle
Cognizant Technology Solutions Corp. has accused Infosys Ltd. of “caught red-handed” theft of trade secrets related to its healthcare software, TriZetto, escalating tensions in a US lawsuit against India’s second-largest IT services firm. In a court filing in Dallas on February 7, Cognizant claimed that Infosys had signed seven non-disclosure agreements (NDAs) that granted access to sensitive information, including trade secrets.
This legal dispute intensified after Infosys countersued Cognizant, alleging that its CEO, Ravi Kumar S., had delayed the launch of Infosys’s healthcare software while negotiating a position with Cognizant. Kumar, a long-time Infosys executive, left the company in October 2022 and took on the role of CEO at Cognizant in January 2023.
The conflict began in August 2024 when Cognizant accused Infosys of misappropriating its trade secrets. Infosys denied these allegations in a filing on January 9, asserting that information regarding Cognizant’s healthcare solutions is publicly available. The company has also requested the Dallas court to compel Cognizant to clearly identify the trade secrets in question.
In its 22-page response, Cognizant stated, “Infosys was caught red-handed misappropriating TriZetto trade secrets that Infosys originally had access to through non-disclosure and access agreements.” Cognizant further claimed that Infosys obstructed an audit of its use of TriZetto information, which could substantiate Cognizant’s allegations and clarify the specifics of the purportedly stolen trade secrets.
Cognizant’s response highlighted that when confronted, Infosys attempted to obscure the situation, asking TriZetto to trust that no wrongdoing had occurred. When TriZetto insisted on an audit, as allowed under the NDAs, Infosys allegedly refused to comply.
As the legal battle unfolds, it is expected to capture the attention of shareholders from both companies. Cognizant reported $19.7 billion in revenue for the last fiscal year, while Infosys recorded $18.6 billion in revenue for its financial year ending in March.