Infosys-Cognizant Legal Dispute Nears Resolution as US Court Pushes for Informal Talks

A long-running Infosys-Cognizant legal dispute is now close to a resolution. On May 23, a US court ordered both companies to settle their remaining issues through informal talks before approaching the court. The dispute involves serious allegations related to trade secrets and healthcare software.

As reported by Moneycontrol, the court’s decision aims to reduce time and cost by encouraging both sides to resolve smaller issues themselves. This development could bring an end to a bitter legal battle between two major IT companies.

How the Legal Dispute Began

The dispute began in 2024, when TriZetto, a Cognizant company, filed a lawsuit in a Texas federal court. It accused Infosys of misusing trade secrets from its popular healthcare software platforms, Facets and QNXT. These platforms are used by many insurance companies in the United States.

Cognizant claimed that Infosys had access to TriZetto’s confidential information through non-disclosure agreements (NDAs). It also accused Infosys of refusing an audit that could confirm how the data was used.

In its complaint, Cognizant said Infosys was “caught red-handed” and had repurposed the data to build a competing product. This is known as the Infosys TriZetto data breach in many reports.

Infosys responded by filing a counter-lawsuit and alleged that Cognizant misused its confidential data and engaged in anti-competitive practices. It accused Cognizant and its CEO, Ravi Kumar, of trying to stop the growth of its own Helix healthcare platform.

Court Encourages Informal Resolution

In a major development, Magistrate Judge David L. Horan asked both companies to work together and solve their disputes through informal talks. The court said they must do this before bringing the issues to court, which is being called the Infosys-Cognizant informal resolution step.

The judge stated clearly, “The parties are required to attempt to resolve by agreement any disputes… before seeking the court’s involvement.” This means they need to talk to each other and try to agree on solutions, especially for small and technical issues. If the talks fail, the court will step in.

The court also gave Cognizant a deadline of June 13 to provide a list of people who know about Infosys’s healthcare platform and to identify who they believe misused its proprietary software. The company was asked to explain what steps it has taken to protect its trade secrets.

However, the court also denied Infosys’s request to make Cognizant give more detailed information about the stolen trade secrets. In its order, the court said, “The Court grants in part and denies in part Infosys’s Motion to Compel and for Protective Order Sequencing Discovery… and Motion to Compel Complete and Verified Responses to Interrogatories.” This means Infosys got approval for some parts of its legal request, but not all of it.

What Happens Next?

The court’s decision could lead to the end of the Infosys-Cognizant legal dispute. By pushing for an informal resolution, the court hopes that both tech giants can settle their differences without going through long and expensive legal proceedings.

This case is a reminder of how important it is for companies to protect their trade secrets, especially in the tech and healthcare sectors. Intellectual property is valuable, and companies must use strong safeguards to avoid data breaches or misuse.

If Infosys and Cognizant are unable to reach an agreement through discussions, the court may intervene. But for now, the focus is on communication and resolution outside the courtroom.

Neither Infosys nor Cognizant responded to media queries about the latest court order. However, the next few weeks will be crucial as the deadline for submissions approaches.