India’s second-largest IT services giant Infosys has filed a lawsuit against rival Cognizant, accusing its CEO Ravi Kumar S of sabotaging the launch of its healthcare platform, Infosys Helix.
Filed Jan. 9 in the U.S. federal court for the Northern District of Texas, the lawsuit alleges anticompetitive tactics, misappropriation of trade secrets and deliberate delays, seeking a jury trial, treble damages and invalidation of the restrictive covenants imposed by Cognizant.
Infosys claims that Kumar, a former senior executive at the company, obstructed the development of Helix by withholding resources during his tenure at Infosys while negotiating his move to Cognizant.
The lawsuit alleges that Kumar’s actions delayed the launch of Helix by 18 months, harming competition and raising costs for health care payers. “Cognizant’s anti-competitive scheme to stop the launch of Infosys Helix included the targeted hiring of key senior executives responsible for Infosys Helix,” the lawsuit states. Kumar, who joined Cognizant as CEO in January 2023, is said to have hired other key executives from Infosys, raising tensions. between companies.
This counterclaim follows Cognizant’s August 2022 lawsuit against Infosys, accusing it of stealing trade secrets linked to its TriZetto healthcare software. Infosys denies the allegations, arguing that Cognizant’s conduct has stifled competition by limiting options for buyers of health IT services.
Cognizant, in its defense, stated, “Cognizant is committed to maintaining the highest standards of integrity… Competitors cannot use Cognizant’s IP to compete unfairly, as Infosys has.” 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, driven by leadership changes and aggressive cross recruitment.