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Cognizant sues software peer Infosys over trade secrets

By Consultants Review Team Saturday, 24 August 2024

Cognizant TriZetto, a software supplier, sued Indian IT firm Infosys in Texas federal court on Friday, alleging Infosys of stealing trade secrets for its healthcare insurance program.

Cognizant said in the complaint that Infosys improperly took data from its databases and exploited it to develop and market competitor products.

Representatives from Cognizant and Infosys did not immediately reply to requests for comment on the allegation.

Teaneck, New Jersey based Cognizant's software includes TriZetto's Facets and QNXT, which are utilized by healthcare insurance firms to automate administrative activities.

According to the lawsuit, Infosys used TriZetto's software to develop "Test Cases for Facets," which inappropriately repackaged TriZetto's data into an Infosys product.

Cognizant further claimed that Infosys breached the law by developing software to extract data from QNXT that contained private TriZetto information and trade secrets.

According to business records, Cognizant generated more than $19.3 billion in sales last year, while Infosys made more than $18.5 billion.

Cognizant requested specific monetary penalties and an injunction for Infosys to stop exploiting its trade secrets.

In a separate battle involving Facets trade secrets, Cognizant recovered $854 million from Atos' Syntel in 2020. The verdict was then reduced and then reversed on appeal last year, but the court concluded that Syntel was still liable for an amount of damages to be calculated.

The case is Cognizant TriZetto Software Group Inc v. Infosys Ltd (U.S. District Court for the Northern District of Texas, No. 3:24-cv-02158).

For Cognizant: Kieran Kieckhefer, Betty Yang, Ahmed ElDessouki, and Elizabeth McCloskey of Gibson Dunn & Crutcher. Infosys: Attorney information is not yet available.

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