Daijiworld Media Network – Mumbai
Mumabi, Jan 10: In a significant escalation of its legal dispute with Cognizant, Infosys has filed a countersuit in the Northern District of Texas, accusing the Nasdaq-listed firm and its CEO, Ravi Kumar, of engaging in anticompetitive activities to maintain a monopoly in the healthcare sector. Infosys has also accused Kumar of misusing sensitive information to hinder the progress of its healthcare platform, Helix, seeking triple the damages it claims to have suffered.
This countersuit comes in response to a lawsuit filed by Cognizant in 2024, which alleged that Infosys stole trade secrets related to its healthcare insurance software. Infosys claims that Kumar, who previously led the development and sales of Helix, was privy to confidential details and deliberately slowed the platform's launch by failing to allocate new programming talent. The lawsuit highlights that Kumar’s actions made it impossible for Infosys to make new developments on the Helix platform.
Kumar, who left Infosys in 2022, joined Cognizant as CEO in 2023. Infosys further accuses Cognizant of poaching key executives, including Shveta Arora and Ravi Kiran Kuchibhotla, after Kumar's departure, and alleges that both executives continued the delays and inefficiencies in Helix's development.
The legal filing also accuses Cognizant of leveraging its dominant position in the US healthcare payer market to stifle competition, thereby limiting market opportunities and denying clients better pricing options.
Infosys’s countersuit comes at a time when the IT industry, particularly in the US and Europe, is facing growth challenges, especially in the healthcare sector. Kumar's tenure at Cognizant has raised eyebrows as he has been accused of poaching senior executives from rival firms, including Infosys.
This legal battle mirrors earlier disputes, such as Wipro's lawsuit against Cognizant’s CFO, Jatin Dalal, and allegations made against Cognizant's senior leaders. Cognizant has denied all accusations, defending its business practices and emphasizing the integrity of its operations.
The ongoing lawsuits underscore the growing tensions in the highly competitive IT sector, as firms vie for dominance in key markets.