India’s second-largest software exporter, Infosys, has filed a counterclaim against NASDAQ-listed Cognizant in a US Court.
The counterclaim, filed on January 10, 2025, accuses Cognizant and its CEO, Ravi Kumar, of engaging in anticompetitive tactics and misusing sensitive information to hinder the growth of its healthcare platform, Infosys Helix.
Infosys vs. Cognizant: Background
The legal battle between Infosys and Cognizant began when Cognizant’s subsidiary, Cognizant TriZetto, alleged in August 2024 that the former had stolen trade secrets related to its healthcare insurance software.
Infosys denied these allegations and vowed to defend itself in court.
In response, the company filed a counterclaim, accusing Cognizant of anticompetitive practices and misuse of sensitive information.
Infosys’s counterclaim outlines several allegations against Cognizant.
The company is accused of using restrictive contractual terms, unfair hiring practices, and efforts to delay its entry into the healthcare software market with its new platform, Infosys Helix.
Infosys claims that Cognizant’s monopolistic strategies include imposing restrictive contractual obligations with no legitimate purpose and barring the former from participating in training programs it was traditionally offered.
The company alleges that Cognizant’s anticompetitive conduct has led to persistently high and growing healthcare costs that Americans ultimately have to bear.
The counterclaim states that healthcare payors covering 65% of the United States’s insured population continue to use Cognizant’s outdated software and pay more for that software and related IT services than they would in a competitive market.
Personal History and CEO Involvement
There is a personal history between the two companies, as Cognizant CEO Ravi Kumar is an Infosys veteran who served as its President and Deputy COO before leaving.
Infosys claims that Ravi Kumar initially supported the development of Infosys Helix.
However, he retracted his support when he started communicating with Cognizant about joining them in 2022.
This included not providing resources for the platform and delaying its launch.
In its counterclaim, the company has asked for a jury trial.
Additionally, it has requested the court to declare Cognizant’s Non-Disclosure and Access Agreements (NDAAs) invalid and unenforceable.
Infosys also seeks three times its damages suffered, as well as reasonable attorneys’ fees and costs.
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