Infosys Accuses Cognizant CEO of Misusing Trade Secrets to Build Rival Product
Published on 1/17/2025 | 4 min read
Published on 1/17/2025 | 4 min read
Infosys has escalated its ongoing legal dispute with Cognizant, filing a counterclaim in a Texas court on January 10. The lawsuit accuses Cognizant and its CEO, Ravi Kumar, of engaging in anticompetitive practices and misusing sensitive information related to Infosys’s healthcare platform, Helix. These allegations have further strained relations between the two IT giants amidst a challenging economic environment in the US and the rapid adoption of AI technologies.
Infosys’s counterclaim responds to a 2024 lawsuit filed by Cognizant subsidiary TriZetto, which alleged that Infosys had misappropriated trade secrets to develop Helix. Infosys is now seeking:
The company accuses Cognizant of intentionally obstructing Helix’s development through:
Infosys claims that Ravi Kumar, a former Infosys executive and now Cognizant CEO, played a pivotal role in hindering Helix’s progress. The lawsuit alleges that Kumar withdrew critical support for the platform during his transition to Cognizant, causing delays and leveraging insider knowledge to block Infosys’s market entry.
Infosys began developing Helix in 2019, initially with support from Ravi Kumar. However, the company alleges that Kumar’s attitude toward the project shifted abruptly in Spring 2022, coinciding with discussions about his potential role at Cognizant. During this time, Kumar allegedly:
Kumar eventually resigned from Infosys in October 2022 and was named Cognizant’s CEO shortly afterward. Infosys further accuses Kumar of:
Cognizant has strongly denied Infosys’s allegations, emphasizing its commitment to maintaining integrity in its business operations. In a statement, the company said:
“Cognizant encourages competition, but competitors cannot use Cognizant’s IP to unfairly compete, as Infosys has done. Cognizant’s software products are widely used in the marketplace for being best-in-class and most preferred among customers.”
Previously, Cognizant argued that Infosys violated Non-Disclosure and Access Agreements to gain an unfair advantage. This counterclaim underscores the intensifying rivalry between the two firms, fueled by executive poaching and strategic competition.
Helix, Infosys’s healthcare insurance platform, was conceived in 2019 to address challenges in the healthcare IT sector. Although it initially garnered support from Ravi Kumar, delays and setbacks emerged in 2022. Infosys alleges that Kumar’s actions during this period—including withholding resources and influencing internal decisions—were deliberate attempts to hinder Helix’s progress while he transitioned to Cognizant.
The legal battle between Infosys and Cognizant underscores the intense competition in the IT industry, particularly in the healthcare sector. With companies vying for market dominance and leveraging emerging technologies like AI, disputes over intellectual property and executive mobility have become increasingly common.
The case also highlights broader challenges in talent retention and innovation. As Infosys and Cognizant expand their healthcare IT portfolios, the outcome of this dispute could set a precedent for similar cases in the future.
Infosys’s counterclaim aims to hold Cognizant accountable for alleged unfair and anticompetitive practices. By requesting a jury trial, Infosys signals its determination to pursue the matter fully. On the other hand, Cognizant’s strong denial sets the stage for a contentious legal battle with potential far-reaching implications for both companies.
As the case unfolds, the IT industry will closely monitor developments that could influence competitive dynamics and legal standards in the sector.