India’s second largest IT services giant, Infosys, has filed a countersuit against rival Cognizant, accusing its CEO Ravi Kumar S of sabotaging the launch of its healthcare platform, Infosys Helix.
Filed January 9 in the U.S. District Court for the Northern District of Texas, the suit alleges anticompetitive tactics, misuse of trade secrets and willful delays, seeking a jury trial, treble damages and invalidation of the agreements restrictions imposed by Cognizant.
Infosys claims that Kumar, a former senior executive at the company, hindered Helix’s development by withholding resources during his tenure at Infosys while negotiating his move to Cognizant.
The suit alleges that Kumar’s actions delayed Helix’s launch by 18 months, harming competition and inflating costs for health care payers. “Cognizant’s anticompetitive scheme to block the launch of Infosys Helix included the targeted recruitment of key senior executives responsible for Infosys Helix,” the lawsuit states. Kumar, who joined Cognizant as CEO in January 2023, has reportedly hired other key Infosys executives, escalating tensions. between companies.
This counterclaim follows Cognizant’s own lawsuit against Infosys in August 2022, accusing it of stealing trade secrets related to its TriZetto healthcare software. Infosys denies the allegations, arguing that Cognizant’s conduct has stifled competition by limiting the options available to buyers of healthcare IT services.
Cognizant, in its defense, said: “Cognizant is committed to the highest standards of integrity… Competitors cannot use Cognizant’s intellectual property to compete unfairly, as Infosys has done.” » The ongoing legal battle highlights the intense rivalry between the two companies, which have seen the revenue gap narrow from $4.3 billion in 2019 to just $1 billion in 2023, fueled by management changes and aggressive cross-hiring.
