India’s second-largest IT services giant, Infosys, has filed a counter-lawsuit against rival Cognizant, accusing its CEO, Ravi Kumar S, of sabotaging the launch of its healthcare platform, Infosys Helix.
Filed on January 9 in the U.S. federal court for the Northern District of Texas, the lawsuit alleges anticompetitive tactics, misuse of trade secrets, and deliberate delays, requesting a jury trial, triple damages, and the invalidation of restrictive agreements imposed by Cognizant.
Infosys claims that Kumar, a former senior executive at the company, obstructed Helix’s development by withholding resources during his tenure at Infosys while negotiating his move to Cognizant.
The suit alleges Kumar’s actions delayed the launch of Helix by 18 months, harming competition and inflating costs for healthcare payors. “Cognizant’s anticompetitive scheme to stall Infosys Helix’s launch included the targeted recruitment of key senior executives responsible for Infosys Helix,” the lawsuit states. Kumar, who joined Cognizant as CEO in January 2023, is said to have hired other key Infosys executives, escalating tensions between the companies.
This counterclaim follows Cognizant’s own lawsuit against Infosys in August 2022, accusing it of stealing trade secrets tied to its TriZetto healthcare software. Infosys denies these allegations, arguing that Cognizant’s conduct has stifled competition by limiting options for healthcare IT services buyers.
Cognizant, in its defense, stated, “Cognizant is committed to upholding the highest standards of integrity… Competitors cannot use Cognizant’s IP to unfairly compete, as Infosys has done.” The ongoing legal battle underscores the intense rivalry between the two firms, which have seen the revenue gap narrow from $4.3 billion in 2019 to just $1 billion in 2023, fueled by leadership shifts and aggressive cross-hiring.
