Infosys has filed a counterclaim against Cognizant in a Texas court, escalating its legal dispute with the US-based IT giant. The India’s second largest software exporter accuses Cognizant and its CEO, Ravi Kumar, of employing anti-competitive tactics and misusing confidential information to hinder the development of Infosys’s healthcare platform, Helix.
What Infosys’ lawsuit against Cognizant says
According to a report by Moneycontrol, Infosys has claimed in the lawsuit that Cognizant obstructed Helix’s development through contractual barriers, poaching key executives, and stifling innovation. The lawsuit specifically alleges that Ravi Kumar, a former Infosys executive, used his insider knowledge to delay Helix’s launch while transitioning to Cognizant.
“Because of Cognizant’s anticompetitive scheme, healthcare payors covering 65% of the United States’s insured population continue to use Cognizant’s outdated software and pay more for that software and related IT services than they would absent Cognizant’s conduct in a competitive market,” the suit reportedly alleges.
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Infosys also alleges that Cognizant is using restrictive contracts and denying Infosys access to training programs, while allowing other competitors to participate. These actions, Infosys contends, are designed to maintain Cognizant’s market dominance and limit competition.
Infosys has requested a jury trial and is seeking a court ruling to invalidate Cognizant’s Non-Disclosure and Access Agreements (NDAAs). Additionally, Infosys is demanding triple the amount of damages incurred and reimbursement for legal fees and costs.
Why Infosys has filed a lawsuit against Cognizant
This counterclaim is a response to a 2024 lawsuit filed by Cognizant’s subsidiary, TriZetto, which alleged Infosys misappropriated trade secrets to develop Helix.
Reportedly, Infosys began developing its healthcare insurance platform, Helix, in 2019 with initial support from Ravi Kumar. However, Infosys claims that Kumar’s support abruptly ended in 2022 when he began discussions with Cognizant about a potential job. This alleged change in attitude included denying resources to Helix and delaying its launch.
“Kumar’s optimism and excitement for the Infosys Helix product suddenly changed in Spring 2022. He began to pull back support of Infosys Helix, declining requests for needed resources, which delayed the completion of Infosys Helix by at least 18 months. In October 2022, Kumar resigned from Infosys, and shortly thereafter, was announced as CTS’s new Chief Executive Officer,” the suit reads, as per Moneycontrol.
What the Cognizant suit said
Cognizant Trizetto sued Infosys last August, claiming Infosys stole software that streamlines medical claims processing and reduces administrative costs. This software, according to Cognizant, uses Trizetto’s proprietary technology and provides solutions for the complex medical claims and payment processing in healthcare.
Cognizant alleged that Infosys violated Non-Disclosure and Access Agreements (NDAAs) by misusing confidential information to develop its own competing software, called Helix. Helix is a platform powered by artificial intelligence that competes with Trizetto’s offerings.