Tata Consultancy Services (TCS) shares fell as much as 3 per cent on Monday after a Wisconsin federal jury has slapped a $940 million penalty, including $700 million in punitive damages, on TCS for allegedly stealing healthcare software from an American company, Epic Systems.
At 12.15 pm, shares of TCS were trading 1.63 per cent down at Rs 2,482. The scrip opened at Rs 2,449 and has touched a high and low of Rs 2496 and Rs 2449, respectively, in trade.
Later, shares of TCS settled 0.03 per cent down at 2,522.40.
A prima facie reading of the verdict indicates that Epic’s claims are grossly exaggerated, according to Kotak Institutional Equities.
The brokerage house said the incident will attract negative press for TCS and it retained ‘Add’ rating on TCS with target price of Rs 2,525.
TCS is slated to announce its March-quarter earnings later in the day.
(With inputs from Reuters)