US court to Infosys, Cognizant: 'Talk it out and if not able to ...'
A US court has directed IT majors –
Infosys
and
Cognizant
to resolve their ongoing disputes over pretrial discovery matters through informal discussions, reports Economic Times. In an order dated May 23, Magistrate Judge David L. Horan instructed both companies to 'meaningfully confer before seeking the court's involvement' and attempt to reach an oral agreement on the non-dispositive issues.
'But if that fails to resolve the dispute, the parties are encouraged, where appropriate, to seek an informal telephone conference with the Court to attempt to resolve simple and straightforward disputes in an efficient and cost-effective manner,' the court said. If disagreements persist, the court has asked both sides to file a joint report.
Infosys vs Cognizant: Background
The litigation started after Cognizant, in August 2024, accused Infosys of stealing trade secrets related to its healthcare platform,
Cognizant TriZetto Software Group
. Infosys responded in January with an antitrust suit, alleging that Cognizant was abusing its monopoly power.
The court has also asked both parties to provide comprehensive information related to Cognizant
TriZetto Software Group
. Cognizant CEO
Ravi Kumar S
, a former Infosys executive who joined Cognizant in January 2023, was previously the main sponsor of Infosys' competing healthcare platform Helix. Infosys has alleged that Kumar, in 2022, deliberately undermined Helix before leaving the company and joining Cognizant. 'Under Kumar's leadership, Cognizant sued Infosys, alleging trade secrets, unfair competition, and contract claims related to issues on which Kumar has undisputed personal knowledge,' Infosys claimed in its filing.
While Cognizant maintains that Infosys' document requests are based on "implausible claims" and meant for harassment, Infosys insists that Kumar's role in both companies makes him uniquely positioned to provide crucial evidence.
What Infosys, Cognizant said after the court ruling
Just hours after the new court order, Infosys argued that Cognizant CEO Ravi Kumar S must not be shielded from the discovery process. 'Kumar's documents are relevant to Infosys's antitrust claims. As the self-described 'custodian of Cognizant,' his communications, analyses, and interactions with other Cognizant executives directly relate to Cognizant's monopolistic maneuvers,' Infosys said in a 23-page filing reviewed by ET.
Infosys also requested the court to reject Cognizant's May 9 motion for a protective order, which sought to limit discovery from top executives. 'The custodian of Cognizant should be one of Cognizant's custodians in this case,' Infosys said, adding that Kumar's documents may be critical to several claims and defenses.
Cognizant, in a statement, welcomed the court's involvement, saying, 'We appreciate the Court's assistance in bringing an end to Infosys' unilateral efforts to obstruct discovery.' It further accused Infosys of withholding documents that could reveal 'the true scope and impact of Infosys' misconduct.
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