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TriZetto
Image courtesy: Facebook/TriZetto

Cognizant sues software rival Infosys for allegedly stealing trade secrets

| @indiablooms | Aug 24, 2024, at 08:27 pm

Texas/IBNS: American IT services giant Cognizant's TriZetto Software Group has filed a case against India's homegrown IT service major Infosys in Texas federal court on Friday (August 23), accusing the latter of stealing trade secrets related to its healthcare insurance software.

According to reports, the development comes eight months after Infosys sent a missive to Cognizant accusing the New Jersey-headquartered IT firm of unfair employee poaching.

Cognizant said in the lawsuit that Bengaluru-headquartered Infosys illegally extracted data from its databases and used the same to build a competing software, as per reports.

No statement has been received from Cognizant regarding the matter so far.

However, an Infosys spokesperson said, “Infosys is aware of the lawsuit. We deny all allegations and will defend our position in the court.”

Cognizant's software includes TriZetto's Facets and QNXT, used by healthcare insurance companies to automate administrative tasks, as per reports.

“Infosys misused TriZetto's software to create ‘Test Cases for Facets,’ which improperly repackaged TriZetto's data into an Infosys product,” reports added.

Cognizant in the lawsuit also said that Infosys breached the law by creating software to extract data from QNXT that includes confidential TriZetto information and trade secrets.

Cognizant has asked the court for an unspecified amount as monetary damages, and an order to Infosys to stop misusing its trade secrets.

The development also comes a month after Indian IT major Wipro Ltd and its former chief financial officer Jatin Dalal settled their months-long court case, after Cognizant agreed to pay Dalal about $0.5 million as settlement payment and reimbursement of his legal fees, reports Economic Times.

US-based healthcare software services provider TriZetto, which was primarily owned by private equity group Apax, was acquired by Cognizant in 2014 for $2.7 billion.

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