Cyber Crime
Cognizant Alleges Infosys ‘Caught Red-Handed’ in Trade Secret Misuse
Cognizant Technology Solutions has alleged in a US court filing that Infosys was “caught red-handed” misappropriating trade secrets related to its healthcare software, TriZetto.
The legal battle between the two IT giants intensified as Cognizant made this claim in a 22-page court reply filed on February 7, over a month after Infosys had counter-sued the company. Infosys had accused Cognizant and its CEO, Ravi Kumar, of engaging in anti-competitive practices and misusing sensitive information to hinder the growth of its healthcare platform, Infosys Helix.
Cognizant’s Allegations Against Infosys
Cognizant’s subsidiary, Cognizant TriZetto, initially sued Infosys in a Texas federal court, alleging theft of trade secrets linked to its healthcare insurance software. TriZetto’s Facets and QNXT platforms, widely used by insurance companies for automating administrative tasks, were reportedly misused by Infosys.
According to the lawsuit, Infosys allegedly used TriZetto’s software to create “Test Cases for Facets,” which involved repackaging confidential TriZetto data into an Infosys product. The filing also claims that Infosys had access to this information through non-disclosure and access agreements (NDAAs) but later misappropriated it.
Infosys Denied Audit Request, Says Cognizant
Cognizant further accused Infosys of obstructing efforts to audit its use of TriZetto’s information. The filing stated that when TriZetto sought an audit, as permitted under NDAAs, Infosys refused to comply.
“When confronted, Infosys obfuscated to the maximum extent possible, asking TriZetto to simply trust, based on nothing, that there had been no wrongdoing,” Cognizant alleged in the court filing. The company has requested the court to order Infosys to produce all relevant documents related to the issue.
Ongoing Conflict Between Cognizant and Infosys
The dispute between Cognizant and Infosys has been ongoing for several months. It initially escalated when Infosys accused Cognizant of poaching key executives, including its former President and Deputy Chief Operating Officer, Ravi Kumar S, who later became Cognizant’s CEO.
The poaching controversy also involved another Indian IT firm, Wipro, which filed lawsuits in the US and India against two former executives—Mohd Haque and former CFO Jatin Dalal—who joined Cognizant. However, Wipro and the executives reached a settlement on July 9, 2024.
As the legal battle unfolds, the case between Cognizant and Infosys is expected to draw further attention in the IT industry.