Bengaluru-based IT services giant Mphasis has initiated legal proceedings against Coforge and 2 of its former senior executives in a US federal court, as per The Reuters report.
The lawsuit alleges that Mphasis's contractual restrictions were breached, leading to the improper acquisition of confidential client information by Coforge.
The case was filed in the US District Court for the District of Colorado on March 31, naming Coforge BPM Inc. and ex-Mphasis vice president Brijesh Khergamker among the defendants.
Mphasis has accused Coforge of hiring its senior executives in violation of existing contracts. Brijesh Khergamker, who joined Mphasis in 2013 and rose to the position of vice president, is one of the central figures in the lawsuit.
He resigned in July 2025 to join Coforge, allegedly taking with him sensitive information that could give Coforge an edge. Another ex-employee, Babu Mani, is also accused of joining Coforge under dubious circumstances, along with 2 other senior executives.
Mphasis claims these executives had access to critical trade secrets, advantageous to competition, including client data, pricing strategies, and other proprietary information.
The lawsuit seeks compensation and court orders to prevent further breaches and misuse of its trade secrets.
In response, Coforge denied the allegations and expressed intent to vigorously defend itself and its employees. Coforge also stated it is evaluating possible counterclaims.
The firm highlighted that several industry leaders across companies have joined it, attracted by Coforge’s robust reputation as an employer.
The client referenced in the complaint is an existing client of Coforge, with a longstanding relationship, challenging Mphasis's assertions of unfair competitive advantage.
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The lawsuit by Mphasis comes amidst challenges faced by India's IT services sector, including AI-led deflation and geopolitical pressures affecting demand.
Legal battles over intellectual property and employment contracts are increasingly common as companies attempt to safeguard their competitive positions.
Notably, in a comparable situation, Infosys last year filed a counterclaim against Cognizant, indicating that competition in the industry is fiercely protected by legal processes.
As of May 07, 2026, at 11:22 AM, Mphasis share price on NSE was trading at ₹2,188.60 down by 1.35% from the previous closing price.
Mphasis’s legal action against Coforge and ex-employees indicates the company's strong stance against breaches of contract and trade secret misappropriation. The pending judicial outcome will provide further clarity on these allegations and the competitive dynamics within the IT services sector.
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Published on: May 7, 2026, 1:10 PM IST
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