Indian mid-tier IT services firm Mphasis has filed a lawsuit against rival Coforge in a US court, alleging breach of contract, unlawful employee hiring and misuse of confidential client information tied to a shared customer, Charles Schwab.
In a filing dated 31 March, Mphasis sought injunctive relief to prevent Coforge from employing two of its former senior executives on Charles Schwab-related accounts and from using what it described as proprietary and confidential data belonging to Mphasis. The suit claims the alleged actions have given Coforge an unfair competitive edge in delivering IT services.
Mphasis has also asked the court to bar former vice president Brijesh Khergamker, named as a party in the case, from working on Charles Schwab’s outsourcing operations through Coforge for a year. The company contends that such engagement violates restrictive covenants in his employment contract, including clauses related to non-compete and non-solicitation. It further sought to restrain him from accepting business from Mphasis customers during the restricted period.
According to the filing, the company is seeking compensatory damages along with reimbursement of legal fees and related costs, though it did not disclose the quantum. Mphasis alleges that Coforge hired at least four senior-level employees in breach of contractual obligations, enabling access to sensitive client information and delivery processes.
(Inputs from Reuters) |
