Infosys seeks damages from Cognizant in antitrust dispute
What's the story
Infosys has filed a counterclaim in its ongoing legal battle with Cognizant, seeking "monetary and equitable" relief. The Bengaluru-based tech giant wants the court to stop Cognizant's alleged anti-competitive practices and award damages for the harm caused by these violations of federal and state antitrust laws. Infosys also requests a jury trial for all issues properly triable to a jury in this case.
Allegations
Cognizant accused of causing financial harm
Infosys has accused Cognizant of engaging in anti-competitive conduct that is inflicting major financial damage on its business. The company also claims this behavior is hurting Health Plans, the direct buyers of core administration software and IT services. Infosys argues that these practices deprive them of the benefits they would get from unhindered competition with more efficient rivals like Infosys, resulting in higher quality software/services at a lower cost.
Innovation impact
Infosys claims Cognizant's actions are stifling innovation
Infosys has also claimed that Cognizant's actions are stifling innovation by delaying the launch of its cloud-native, AI-leveraging Helix Core Administration Software. The company said there is a strong demand from Health Plans for this software. This delay, according to Infosys, is due to Cognizant's anti-competitive practices in the healthcare IT services market.
Background
The legal battle began in August 2024
The Infosys-Cognizant dispute dates back to August 2024, when TriZetto, a subsidiary of Cognizant, sued Infosys for allegedly misusing trade secrets to develop a competing healthcare platform (Helix). Infosys countered with claims against Cognizant for anti-competitive practices such as poaching employees. The case now hinges on whether the court finds Infosys's counterclaims sufficient to warrant an antitrust trial.