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Infosys names two more Cognizant execs, claims more damages

Infosys names two more Cognizant execs, claims more damages

Time of India01-07-2025
The joint filing highlighted two similar disputes - the first dispute concerns the production of documents from the Syntel litigation, which Cognizant does not oppose. And the second concerns Cognizant's refusal to produce documents from two its employees, Surya Gummadi and Kathy Diaz, each of which are responsive to numerous RFPs (request for proposals).
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After targeting Cognizant Technology Solutions' chief executive officer (CEO), rival Infosys names two senior executives of the US-headquartered IT services major of being highly relevant to Infosys 's antitrust claims, it a joint court filing.Infosys claims both the officials - Cognizant's president for Americas business Surya Gummadi and chief people officer Kathryn Diaz - as key to its anticompetitive strategy following the healthcare software platform TriZetto's acquisition in 2014.TriZetto is in direct competition with Infosys' Helix, which was led by Cognizant CEO Ravi Kumar S while he worked with Infosys until October 2022. He took over as Cognizant CEO in January 2023.In a 49-page joint filing on June 13, the Bengaluru-based Indian IT giant has named both Gummadi and Diaz of having personal knowledge and unique involvement related to Infosys's antitrust claims.Additionally, Infosys also claims the amount in damages it is entitled could increase three times.'The amount in controversy flowing from the antitrust claims alone is significant, likely in excess of hundreds of millions of dollars. Both parties have monetary damages claims against each other, and Infosys is entitled to treble damages and attorneys' fees if it prevails on its antitrust claims,' the filing said.The joint filing highlighted two similar disputes - the first dispute concerns the production of documents from the Syntel litigation, which Cognizant does not oppose. And the second concerns Cognizant's refusal to produce documents from two its employees, Surya Gummadi and Kathy Diaz, each of which are responsive to numerous RFPs (request for proposals).ET has reviewed the filing. Infosys did not immediately respond to emailed requests for comments.Cognizant said, 'Infosys' ongoing obfuscation does not change the fact that they have been caught red handed stealing Cognizant's intellectual property. Infosys manufactured baseless claims that suffer from multiple factual and legal deficiencies and only serve to distract from its trade secret theft.'Infosys' claims before a US district court, first raised in January, alleged that Kumar S of deliberately delaying the rollout of its healthcare product, Infosys Helix, as he was in talks for the top job at the Nasdaq-listed company.In May, ET reported that US court has asked both Infosys and Cognizant to attempt to resolve the case by informal agreement.'Gummadi has personal knowledge and unique involvement related to both parties' claims. Notably, he 'led Cognizant's acquisition of TriZetto,' App'x 947, which marked the beginning of Cognizant's ongoing monopolistic schemes, and Cognizant's ownership of purported trade secrets,' Infosys said in the filing.Gummadi is responsible for Cognizant's 'strategic direction and operational performance'. This is relating to TriZetto's relevant geographic market—the United States—and product markets—healthcare payor software and related IT services.Additionally, the filing pointed out Diaz's role in using human resources functions as part of Cognizant's 'anticompetitive schemes' and 'pressure on clients'.Diaz, who has served as Cognizant's Chief People Officer since May 2023, has personal knowledge and unique involvement related to Infosys's antitrust claims.In her role, she leads Cognizant's human resources function, including 'how the company attracts . . . its diverse global workforce. Given her central role leading Cognizant's hiring and retention, her documents are uniquely relevant to Cognizant's intentional recruiting of Infosys executives to stymie competition from Infosys Helix,' the filing added.Infosys accused its former president Kumar of having 'installed Diaz as Chief People Officer after he became Cognizant's CEO in 2023 and she occupied that role as Cognizant targeted Infosys Helix by scheming with and hiring away Infosys executives overseeing the product's development: Shveta Arora (October to December 2023) and Ravi Kuchibhotla (2024)'.Cognizant has more than 70% workforce is based in India.Both the IT majors are direct competitors and have a strong healthcare software services business. Cognizant's health sciences vertical contributed to around one-third of its revenue at about $5.9 billion, while Infosys gets 7.3% of its revenue, or about $1.4 billion from the segment.In a similar case earlier involving TriZetto earlier was the Syntel litigation, in which, Cognizant had won $854 million from Atos' Syntel Sterling Best Shores Mauritius in a separate dispute over Facets trade secrets in 2020. The award was later cut and then overturned on appeal in 2023, though the court found that Syntel was still liable for an amount of damages to be determined.Infosys remains hopeful that pending disputes will be resolved in the coming days without requiring court intervention.
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