In a significant escalation of their ongoing legal battle, Infosys has filed a counterclaim against Cognizant in the Northern District of Texas, accusing the US-based IT giant and its CEO, Ravi Kumar, of engaging in anticompetitive tactics and misusing sensitive information, according to moneycontrol.com. The move comes months after Cognizant’s subsidiary, Cognizant TriZetto, alleged that Infosys had stolen trade secrets related to its healthcare insurance software.
Key Allegations by Infosys:
- Anticompetitive Practices: Infosys claims that Cognizant has employed restrictive contractual obligations and monopolistic strategies to stifle competition in the US healthcare software market.
- Misuse of Sensitive Information: Infosys alleges that Ravi Kumar, a former Infosys President and Deputy COO, used proprietary knowledge to slow the growth of Infosys Helix, its healthcare platform.
- Barriers to Entry: The counterclaim accuses Cognizant of obstructing Infosys’s product development by restricting access to training programs and luring away key executive sponsors.
- Impact on the Market: Infosys contends that Cognizant’s actions have forced healthcare payors covering 65% of the US insured population to rely on outdated and overpriced software.
Legal Demands:
- A jury trial to declare Cognizant’s Non-Disclosure and Access Agreements (NDAAs) invalid and unenforceable.
- Compensation amounting to three times the damages suffered by Infosys.
- Reimbursement for reasonable attorneys’ fees and court costs.
Background:
This legal tussle follows a period of strained relations between the two IT giants, fueled by Cognizant’s earlier lawsuit and Infosys’s allegations of executive poaching. Cognizant CEO Ravi Kumar’s history as a former Infosys executive adds another layer of complexity to the dispute.
