Electronic health record giant Epic Systems will receive about $125 million in court-awarded payments from Tata Consultancy Services, the Mumbai, India-based information-technology and consulting firm said in a regulatory filing Tuesday.
In 2014, Verona, Wisconsin-based Epic alleged Tata illegally accessed Epic Systems' internal documents as Tata sought to enter the U.S. EHR market. The U.S. Supreme Court rejected Tata's petition to file an appeal against the orders passed by the U.S. Court of Appeals, 7th Circuit, which confirmed the punitive damages in August 2020.
Tata said it intended to make a balance provision in its financial statements for the third quarter of 2023 totaling $125 million.
In 2016, a jury awarded Epic Systems $940 million but subsequent court actions reduced the amount Tata owed the EHR company. A federal appeals court previously ruled that punitive damages should not exceed the amount of compensatory damages, which was set at $140 million.
The complaint stemmed from an Epic Systems EHR implementation at Oakland, California-based Kaiser Permanente, for which the health system hired Tata as a contractor. Epic Systems alleged that Tata breached a contract that provided Tata's employees limited access to Epic Systems's proprietary information. Epic claimed that a Tata employee downloaded more than 6,000 Epic Systems documents and shared his credentials with coworkers in India.
In 2016, a district court jury awarded Epic Systems $240 million in compensatory damages and $700 million in punitive damages. The court trimmed compensatory damages to $140 million and punitive damages to $280 million in 2017.
Neither company immediately responded to requests for comment.