Statement
Statement
Paris, France, April 21 2021 - On April 20, 2021, the United States District Court for the Southern District of New York granted in part the post-trial motion filed by Syntel, now part of Atos, in connection with Syntel’s ongoing litigation with Cognizant and its subsidiary TriZetto. The Court reduced the jury’s $855 million damages award to $570 million and denied Cognizant and TriZetto’s request for an additional $75 million in pre-judgment interest.
In October 2020, a jury found Syntel liable for trade secret misappropriation and copyright infringement and awarded Cognizant and TriZetto approximately $855 million in damages. Throughout the trial and in its post-trial motion, Syntel maintained that Cognizant and TriZetto had failed to meet their burden to show trade secret misappropriation and that their damages theories were improper as a matter of law.
In its decision, the Court held that sufficient evidence existed to support the jury’s verdict of trade secret misappropriation and that the jury’s award of $285 million in compensatory damages was not contrary to law. However, the Court found that the jury’s $570 million punitive damages award was excessive and should be reduced to $285 million. If TriZetto does not agree to this reduction, the Court will grant Syntel a new trial on punitive damages. The Court also held that it will enter an injunction prohibiting future use by Syntel of the specific trade secrets at issue in the trial.
While Atos supports the Court’s decision to significantly reduce the punitive damages at issue and prevent a further windfall to Cognizant and TriZetto in the form of pre-judgment interest, Atos plans to appeal the portion of the jury’s verdict affirmed by the Court. Among other concerns, Atos continues to consider the amount of damages grossly out of proportion to the acts complained of, and that the maximum amount of damages legally available to TriZetto in this case is approximately $8.5 million.
Contacts
Investor Relations:
Gilles Arditti - +33 1 73 26 00 66 - gilles.arditti@atos.net
Press:
Anette Rey - +33 6 69 79 84 88 - anette.rey@atos.net
About Atos
Atos is a global leader in digital transformation with 105,000 employees and annual revenue of over € 11 billion. European number one in cybersecurity, cloud and high performance computing, the Group provides tailored end-to-end solutions for all industries in 71 countries. A pioneer in decarbonization services and products, Atos is committed to a secure and decarbonized digital for its clients. Atos operates under the brands Atos and Atos|Syntel. Atos is a SE (Societas Europaea), listed on the CAC40 Paris stock index.
The purpose of Atos is to help design the future of the information space. Its expertise and services support the development of knowledge, education and research in a multicultural approach and contribute to the development of scientific and technological excellence. Across the world, the Group enables its customers and employees, and members of societies at large to live, work and develop sustainably, in a safe and secure information space. www.atos.net
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