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US Court Urges Infosys and Cognizant to Resolve Legal Row Amicably

Written by: Akshay ShivalkarUpdated on: May 29, 2025, 7:42 PM IST
A US court has urged Infosys and Cognizant to settle their nine-month-long dispute over trade secrets through mutual agreement.
US Court Urges Infosys and Cognizant to Resolve Legal Row Amicably
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In what could signal the end of a prolonged legal tussle between two IT heavyweights, a US court has advised Infosys and Cognizant Technology Solutions to resolve their differences without escalating the matter further in court.

Magistrate Judge David L. Horan issued the directive, urging both parties to “meaningfully confer before seeking the court’s involvement” regarding non-dispositive pretrial discovery matters.

He further stated that the issue should ideally be settled via oral agreement.

“But if that fails to resolve the dispute, the parties are encouraged, where appropriate, to seek an informal telephone conference with the Court to attempt to resolve simple and straightforward disputes in an efficient and cost-effective manner,” the court order said.

In case disagreements persist, both parties have been allowed to file a joint report. The court also directed them to fully disclose information related to the Cognizant TriZetto Software Group, the centre of the ongoing dispute.

Infosys Demands CEO Accountability

Late evening on May 23, just hours after the court order, Infosys pressed that Cognizant’s CEO, Ravi Kumar S, must provide relevant documentation supporting claims made against Infosys.

In a 23-page court filing, Infosys said, “Kumar’s documents are relevant to Infosys’s antitrust claims. As the self-described ‘custodian of Cognizant,’ his communications, analyses, and interactions with other Cognizant executives directly relate to Cognizant’s monopolistic maneuvers.”

Earlier, in an interview with The Economic Times in February, Kumar had stated, “I am the custodian of Cognizant. I will do what is right for this firm… Everything else, I just want to put on the side.” This quote has now become part of Infosys’ legal submission.

The dispute began in August 2024, when Cognizant accused Infosys of stealing trade secrets from its healthcare platform, Cognizant TriZetto Software Group. Infosys retaliated in January 2025 by filing an antitrust case in the US, alleging that Cognizant had been leveraging its monopoly power unfairly.

Infosys, India’s second-largest IT firm, has consistently denied any wrongdoing, arguing that Cognizant is using the courts to hinder its business growth in the healthcare tech domain.

Cognizant Responds

Cognizant, which employs more than 70% of its workforce in India, welcomed the court’s intervention.

In a statement, the company said, “We appreciate the Court’s assistance in bringing an end to Infosys’ unilateral efforts to obstruct discovery. The Court made clear that Infosys cannot shield itself behind a self-imposed protective order to avoid disclosing information it is contractually and legally obligated to provide.”

It further added, “We have been surprised by Infosys’ refusal to produce this information—particularly given our clear entitlement to it under the parties’ agreement and through standard discovery rules. The only reasonable explanation for Infosys’ continued concealment is that the withheld documents will reveal the true scope and impact of Infosys’ misconduct. We thank the Court for its intervention and look forward to proving our case.”

Conclusion

As the court pushes both Infosys and Cognizant towards a negotiated settlement, the future of this high-profile legal battle now hinges on whether the two tech giants can find common ground. While both firms have dug in their heels, the court’s encouragement for dialogue over litigation may finally bring this cross-border conflict to a resolution.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: May 29, 2025, 7:42 PM IST

Akshay Shivalkar

Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and asset management, he simplifies complex financial concepts to help investors make informed decisions through his writing.

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