Shares of Sterlite Technologies Ltd (STL) slumped 5.92% to ₹107.90 in Monday’s trade after its US subsidiary, Sterlite Technologies Inc (STI), was ordered by a US District Court in South Carolina to pay $96.5 million in damages.
The litigation was initiated by Prysmian Cables and Systems USA, LLC, which alleged that former Prysmian employee Stephen Szymanski, later employed by STI, violated non-compete and confidentiality agreements by disclosing confidential information. The jury found STI liable, awarding damages of $96.5 million against it and $200,000 against Szymanski.
STL clarifies position
STL emphasized that it was not a party to the dispute and that no claims have been made directly against the parent company. The company said STI intends to appeal the judgment, calling it “unsupported by testimony, evidence, and applicable law.”
STL also stated that the matter is sub-judice and the eventual financial implications will only be known once legal proceedings are completed.
Market reaction
Investors reacted sharply to the news, sending STL’s stock lower. At current levels, the company’s market capitalization stands at ₹55,700 crore. The verdict has raised concerns over potential liabilities and reputational risks, even though STL has distanced itself from the case.
The company added that it will pursue all available post-trial remedies, including appeal, in order to protect its interests.