Dive Brief:
- A Wisconsin jury awarded Epic $240 million in compensatory damages and $700 million in punitive damages in a judgement against Mumbai-based Tata Consultancy Services Ltd. and its U.S. subsidiary.
- Epic Systems Corp. alleged that Tata America International Corp. and its U.S. subsidiary, Tata America International Corporation, breached a contract leading Tata employees to have access to Epic's proprietary information.
- The breach allegedly occurred when Kaiser Permanente signed an agreement to purchase Epic's EHR system. Since Tata was a contractor helping Kaiser to install Epic's system, Epic and Tata had an agreement whereby Tata employees had access to Epic's computer source code and documentation for computer programs, like UserWeb, Epic's electronic workspace that helps customers implement its systems.
- Tata and its employees were not allowed to use that information to develop software to compete with Epic. However, Epic filed a lawsuit in 2014 that alleged Tata improperly accessed proprietary information starting in 2012 via Epic's UserWeb.
Dive Insight:
Epic's allegation is based somewhat on statements from a whistleblower, Philippe Guionnet, who managed the contract Kaiser-Tata contract. Guionnet was aware of Tata's Med Mantra hospital management software products, which were marketed to Kaiser and according to court documents, Guionnet "represented that Tata leaders in the U.S. and India were aware of and complicit in this scheme," according to Modern Healthcare.
In addition, a Tata employee, Ramesh Gajaram, a consultant for Kaiser, allegedly downloaded more than 6,000 Epic documents, which Epic complained were not relevant to his job function for Kaiser.
A Wisconsin federal jury awarded Epic $940 million: $240 million in compensatory damages and $700 million in punitive damages for seven claims including breach of contract, misappropriation of trade secrets, unfair competition, and unfair enrichment.
Tata plans to appeal the decision.