Infosys has escalated its legal battle with Cognizant by filing a counterclaim in a Texas court on January 10, accusing the latter and its CEO, Ravi Kumar, of anticompetitive tactics and misuse of sensitive information, according to reports.
The lawsuit, centred on Infosys’s healthcare platform Helix, underscores growing tensions between the two IT giants amidst industry uncertainty due to the US economic climate and the rise of AI.
*”Cognizant is committed to upholding the highest standards of integrity in all business operations and will take decisive action to address any allegations that compromise competitive standing. Cognizant encourages competition, but competitors cannot use Cognizant’s IP to unfairly compete, as Infosys has done. Cognizant’s software products are widely used in the marketplace for being best-in-class and most preferred among customers,” said Cognizant in a statement.
This counterclaim follows Cognizant subsidiary TriZetto’s 2024 lawsuit alleging Infosys misappropriated trade secrets to develop Helix. Infosys has now requested a jury trial, seeking triple damages, legal costs, and the invalidation of restrictive agreements imposed by Cognizant.
The suit alleges Cognizant obstructed Helix’s development by imposing contractual barriers, poaching key Infosys executives, and stifling innovation. It further claims Ravi Kumar, who is also a former Infosys executive, delayed Helix’s launch during his transition to Cognizant, leveraging inside knowledge to hinder Infosys’s market entry.
Infosys began developing its healthcare insurance platform, Helix, in 2019, with initial backing from Ravi Kumar. However, the company alleges that Kumar withdrew his support in 2022 while engaging with Cognizant about a potential role. This included denying resources for the platform and delaying its launch by 18 months.
The lawsuit claims Kumar’s sudden shift in attitude toward Helix occurred in Spring 2022, coinciding with his transition to Cognizant. He resigned from Infosys in October 2022 and was shortly after named Cognizant’s CEO.
Infosys also accuses Cognizant of targeting key Helix executives, including Kumar, Shveta Arora, and Ravi Kiran Kuchibhotla, to hinder the platform’s development and marketing efforts before their departures. Additionally, Kumar allegedly used his insider knowledge of Helix’s strategy and functionality to dissuade potential clients after joining Cognizant.
Cognizant, a key player in healthcare IT, previously argued that Infosys violated Non-Disclosure and Access Agreements to gain an unfair advantage. The case reflects a deepening rivalry between the two firms, fuelled by executive poaching and strategic competition.
*[Update] 10th January, 2025 | 10:20 PM IST | Cognizant responded to the claims by Infosys]
