Cognizant says Infy was caught ‘red handed’ stealing TriZetto trade secrets

Cognizant’s reply, made in a Dallas courtroom submitting on 7 February, comes a bit of greater than a month after Infosys countersued Cognizant, stating its CEO Ravi Kumar S. had delayed the rollout of Infosys’s personal healthcare software program product whereas he was a president at Infosys and negotiating for a job with Cognizant.

Infosys veteran Ravi Kumar had give up in October 2022, and joined Cognizant as CEO in January 2023. The dispute flared in August 2024 when Cognizant alleged that Infosys had stolen its trade secrets from TriZetto. Infosys rejected the allegation in a 9 January submitting, including details about Cognizant’s healthcare options have been public. It has additionally requested the Dallas courtroom to compel Cognizant to correctly determine the trade secrets in query.

In its 22-page courtroom response, Cognizant stated, “Infosys was caught red-handed misappropriating TriZetto trade secrets that Infosys initially had entry to by means of non-disclosure and entry agreements (NDAAs).” It stated Infosys refused to permit an audit of Infosys’s use of TriZetto info, which might show its case and likewise make clear the specifics of the allegedly stolen trade secrets that Infosys desired.

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“When confronted, Infosys obfuscated to the utmost extent doable, asking TriZetto to easily belief, primarily based on nothing, that there had been no wrongdoing. When TriZetto refused to take Infosys at its phrase and demanded an audit of Infosys’s use of TriZetto’s info, as explicitly permitted below the NDAAs for any motive (a lot much less rampant trade secret misappropriation), Infosys refused to conform,” learn Cognizant’s reply.

Emails despatched to Infosys and Cognizant went unanswered. Whereas Cognizant is represented by Gibson Dunn & Crutcher LLP, a Los Angeles-based legislation agency, Infosys is represented by Jenner & Block LLP, a Chicago-based legislation agency.

This acrimony between two of the world’s largest service suppliers is probably going to attract shareholders’ consideration because the disagreement unfolds.

Cognizant, which follows a January-December accounting 12 months, reported $19.7 billion in income final 12 months whereas Infosys, which follows an April-March monetary 12 months, received $18.6 billion in full-year income on the finish of March 2024. Each compete within the healthcare providers area. Whereas Infosys will get about 7.5% or $1.4 billion of its full-year income from purchasers within the life sciences sector, Cognizant will get nearly a 3rd, or $5.9 billion from purchasers on this area.

For now, the Teaneck, New Jersey-based firm requested the Dallas courtroom to dismiss Infosys’s plea.

“For the foregoing causes, TriZetto respectfully requests that the Court docket deny Infosys’s movement in its entirety, and order that Infosys produce all paperwork it’s withholding on the premise that TriZetto has not but sufficiently recognized its trade secrets,” stated Cognizant.

However how did the scenario get right here?

Cognizant stated that Infosys sought to “cowl up its misconduct” by asking the Dallas courtroom to dam discovery of its alleged trade secret theft. This, when each events have been in talks.

“For Infosys’s procedural failure alone, this courtroom ought to deny the movement,” learn Cognizant’s reply.

Cognizant additional countered Infosys’s declare that it was not specifying its trade secrets. Cognizant argued that it was not obligated to specify the stolen trade secrets and that the premise below which Infosys sought specificity was with out 12-years previous and overruled by one other ruling.

Cognizant then underlined the legality of its audit request.

“Infosys asserts that TriZetto’s discovery requests quantity to an improper “fishing expedition.” The fact is that, even unbiased of this lawsuit, TriZetto is contractually entitled below the NDAAs to audit Infosys’s enterprise information to find out what TriZetto info Infosys has in its possession, who at Infosys has entry to that info, and whether or not that info has been utilized in an unauthorized method,” stated Cognizant.

Cognizant stated that Infosys signed seven non-disclosure agreements whereas giving it entry to the TriZetto software program that included sure key info corresponding to trade secrets. The corporate added that Infosys gave unauthorized entry of Trizetto’s confidential info to a “senior Infosys worker,” which it later referred to as out to be a “senior know-how architect” to construct a competing software program product.

“Infosys now complains that TriZetto’s trade secret identification is simply too “broad,” however Infosys can’t have it each methods—demanding that TriZetto present additional specificity concerning what Infosys misappropriated, whereas on the identical time unlawfully concealing the knowledge TriZetto would wish to supply such further specificity,” Cognizant added.

Cognizant stated it had recognized seven broad classes of knowledge and trade secrets inside these classes. These embrace TriZetto’s proprietary software program, together with Sides and QNXT, and the workflows and performance; the supply code, technical documentation; Take a look at instances for testing the software program; Interfaces, connectors and adaptors and the instruments used for creating them; phrases of the contracts between TriZetto and its purchasers, together with the pricing for TriZetto services and products; and technical documentation associated to every merchandise beforehand listed.

Cognizant added that Infosys has not challenged the misappropriation claims regardless of calling them speculative.

“Though Infosys argues that TriZetto’s misappropriation claims are primarily based on “hypothesis” (Mot. at 4), Infosys didn’t transfer to dismiss TriZetto’s trade secret claims on the premise that TriZetto did not adequately allege acts of misappropriation. See usually Dkt. No. 33. Nor might it, as there’s direct proof of misappropriation. Certainly, it might have been not possible for Infosys to develop the QNXT Adaptor or check instances for Sides with out entry to and use of TriZetto’s trade secret info,” stated Cognizant to again its claims.

Cognizant acquired Trizetto in 2014 for $2.7 billion, making it the corporate’s largest acquisition. By advantage of this acquisition, Cognizant received possession of QNXT and Sides, softwares that present administrative options within the healthcare area.

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