Tata Consultancy Services (TCS) will be considering a buyback of shares of the company at a board meeting to be held on October 7.
TCS said in a filing that the meeting of the Board of Directors of the company is scheduled on October 7 and the Board of Directors will consider a proposal for buyback of equity shares of the company, at its meeting to be held on October 7, 2020.
Tata Consultancy Services (TCS) will be providing Rs 1218 crore as an exceptional item in the upcoming results to be announced on October 7 as a provision in the books for a legal claim in the Epic Systems matter.
In a regulatory filing, TCS said in the EPIC Systems Corporation matter, the company would be providing Rs 1,218 crore as exceptional item, in the financial results for the three and six months ended September 30, to be announced on October 7.
On August 20, the US Court of Appeals, 7th Circuit, Chicago, returned a verdict on the appeal filed by TCS, reducing the damages award.
The Court held that the punitive damages award of $280 million is constitutionally excessive, vacated the punitive damages award and directed the Trial Court to reassess the punitive damages. The Court upheld the compensatory damages award of $140 million.
“TCS is legally advised that it has the correct and the strongest possible arguments in its favour and the Order and reduced damages are not supported by facts presented during the trial”, the company said.
In September 2020, TCS has filed petition seeking re-hearing on both compensatory and punitive damages. EPIC has also filed petition seeking re-hearing on decision of the Appeals Court invalidating award of punitive damages exceeding the amount of compensatory damages. “The provision in the books for legal claim is being made as a matter of prudence”, TCS said.