Court cuts punitive damages in Epic-Tata trade secrets lawsuit

A federal district to research has further away reduced, at $140 million, the punitive damage from Epic Systems in a long term Trade secrets CONTESTATION.

The court order filed on Friday marks the latest chapter in the electronic health records provider’s legal battle against India-based information technology services and consulting firm Tata Consultancy Services. In 2016, a jury awarded Epic Systems $940 million, but subsequent legal actions have dramatically reduced the amount Tata must pay. A The federal appeals court previously ruled that punitive damages should not exceed the amount of compensatory damages, which is also $140 million.

“Having witnessed Tata’s repeated efforts to block discovery and the detailed record of Tata’s actual breach of any semblance of business ethics and institutional safeguards for ill-gotten gains at the expense of others, this court readily understands the desire of the jury to try to send a message to Tata and other companies tempted to do the same to stay within the ethical lines of competition, ”wrote Judge William Conley for the United States District Court for the district western Wisconsin in the price-cutting order.

Epic Systems sued Tata and its US subsidiary in 2014, alleging the Indian company used internal Epic Systems documents to compare the company’s software. to himself as he sought to enter the US EHR market.

The complaint stems from an EHR Epic Systems implementation at Kaiser Permanente, for which the health system hired Tata as a contractor. Epic Systems alleged that Tata breached a contract that provided its employees with limited access to Epic Systems proprietary information.

Epic Systems claimed that a Tata employee downloaded more than 6,000 Epic Systems documents and shared his credentials with colleagues in India.

Tata Consultancy Services denies the allegations. Neither company responded to requests for comment.

In 2016, a district court jury awarded Epic Systems $240 million in compensatory damages and $700 million in punitive damages. The court reduced compensatory damages to $140 million and punitive damages to $280 million in 2017.

In 2020, the United States Court of Appeals for the 7th Circuit ordered the lower court to further reduce punitive damages. Although Tata’s actions injured Epic Systems, the damage “does not support the amount of punitive damages”, judges Michael Kanne wrote for the calls to research.
“We agree with the district court that [Tata’s] conduct warrants punishment,” Kanne wrote. ” But [Tata’s] conduct was not reprehensible “to an extreme degree”. “

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