Indian mid-cap IT firm Mphasis has filed a lawsuit in the U.S., alleging rival Noida-based Coforge had hired two former senior leaders in an unlawful manner that breached contract and illegally shared confidential client data. In a filing from March 31, Mphasis filed an injunction so their former employees with Coforge could be prevented from working on accounts related to Charles Schwab.
Former senior vice president at Mphasis, Brijesh Khergamker, who has been mentioned in the filing, has been asked by his former company to be barred from working on the BFSI client’s outsourcing operations, for a year. The company is also seeking reparation and reimbursement of legal fees and other related costs.
According to the filing, the company is seeking compensatory damages along with reimbursement of legal fees and related costs, though it did not disclose the quantum. Mphasis alleges that Coforge hired at least four senior-level employees in breach of contractual obligations, enabling access to sensitive client information and delivery processes.
“We deny all allegations of wrongdoing in the complaint, and we intend to vigorously defend ourselves and our employee in this matter. We are also evaluating counterclaims that we may assert in this matter,” Coforge said in a response over email.
“Over the past few years, several senior leaders have joined Coforge from competing firms to be part of Coforge’s growth story as Coforge is perceived as an action oriented and aspirational employer brand. The client named in the complaint is an existing client of Coforge and has been an important client of Coforge for many years.
We continue to grow and strengthen this relationship through a combination of industry-leading delivery and service capabilities,” the company added. Since 2024 Infosys and Cognizant were part of an escalating legal battle under which the latter’s subsidiary TriZetto sued Infosys for allegedly misusing trade secrets to build a rival healthcare platform.
Infosys, in turn, accused Cognizant of poaching a number of key employees. The lawsuit included Cognizant CEO Ravi Kumar S, previously the President and Deputy Chief Operating Officer at Infosys, who allegedly delayed the Helix project while moving to Cognizant in 2022.
Additionally, back in 2023, Wipro filed a case against its former chief financial officer (CFO), Jatin Dalal after he moved to Cognizant.
Coforge posted robust fourth-results for FY26 with net profit jumping by 145% on a quarterly basis to Rs 612 crore, as revenue grew by 5.2% to Rs 4,450 crore, beating analyst estimates. The company also posted EBITDA margins at an all-time high of 19.6%.
Meanwhile, Mphasis posted results for quarter ended March, slightly higher than market estimates with net profit 15.3% higher at Rs 509.6 crore and revenue at Rs 4,242.6 crore, up by 6% sequentially.