Indian IT firm Mphasis has initiated a lawsuit against its competitor Coforge in a US court, asserting that Coforge unlawfully hired its former executives and accessed sensitive client information.
The lawsuit, filed on March 31, seeks an injunction to prevent Coforge from employing two of Mphasis's former executives on accounts for Charles Schwab, a mutual client of both companies. Mphasis claims that this action violates contractual obligations and compromises its confidential data.
Specifically, the suit targets former Vice President Brijesh Khergamker, requesting the court to restrict him from working on Charles Schwab's outsourcing operations through Coforge for one year. Mphasis contends that Khergamker's employment with Coforge breaches his previous contract.
In addition to injunctive relief, Mphasis is pursuing compensatory damages and reimbursement for legal expenses, although the filing lacks detailed financial figures.
Mphasis alleges that Coforge has gained an "unfair competitive advantage" by hiring at least four senior-level employees from Mphasis, which has intensified the competitive landscape as demand for IT services in India has declined.
This lawsuit reflects a broader trend in the industry, where companies are increasingly taking legal action against former employees and competitors over contract violations. For instance, Infosys previously filed a counterclaim against Cognizant for similar issues, and Wipro took legal action against its former CFO after he joined Cognizant.
