Class action lawsuit[edit]
On 14 February 2006, U.S. law firm Lieff Cabraser Heimann & Bernstein, LLP filed a nationwide class action lawsuit against Tata.[103] In July 2013, judge Claudia Wilken of the U.S. District Court, Northern District of California in Oakland, California, granted final approval to the settlement of the lawsuit on behalf of all non-U.S. citizens employed by TCS within the state of California from 14 February 2002 to 30 June 2005. The workers claimed that they were forced to sign over their federal and state tax refunds to their employer, as well as stating their Indian salaries were wrongfully deducted from their U.S. pay.[104] On February 22, 2013, the Company entered into an agreement to settle for a sum of INR 16,163 lakhs ($29.75 million), this class action suit filed in a United States Court relating to payment to employees on deputation.[65]
Charleston County in South Carolina sued Tata Consultancy Services for delivering botched software. TCS won the contract to create an online tax system (digiTax) for a $1.2 million. The system was supposed to go live in July 2004 but was plagued by several delays. Tata developed the software at its offshore development center in Chennai, India. The software was rejected by Charleston County during user acceptance testing where it failed to meet even the basic requirements. County sued Tata and it agreed to pay back $1 million in out of court settlement. Charleston County finally bought an off the shelf solution.[105]
A US grand jury has slapped two companies of India's Tata group - Tata Consultancy Services and Tata America International Corp - with a USD 940 million fine in a trade secret lawsuit filed against them. Epic Systems had accused TCS and Tata America International Corp, in a lawsuit filed in October, 2014 in US District Court in Madison which was amended in January and December 2015, of "brazenly stealing the trade secrets, confidential information, documents and data" belonging to Epic.[106]
Accusations of discrimination[edit]
In May 2013, the Canadian Broadcasting Corporation, in its extensive coverage of the hiring of temporary foreign workers in Canada and the unemployment issues faced by Canadians, reported that TCS rarely hires skilled experienced Canadians at the Toronto offices while advertising open positions in Canada. TCS responded that the company hired more than 125 Canadian workers in 2013 who make less than 1.2% of the 10,452 workers the company has outside of India.[65][107]
In April 2015, a class-action lawsuit against TCS was filed in a San Francisco federal court by a U.S. information technology worker and ex-employee, who accused the company of discriminating against American workers by favoring South Asians in hiring and promotion. The lawsuit claimed that South Asians comprise 95% of the company's 14,000-person U.S. workforce, and that TCS engaged in discriminatory practices by sourcing most of its workforce through the H-1B visa programme, by focusing its U.S.-based hiring disproportionately on South Asians and by favoring South Asian employees in its human resources practices. In response, TCS refuted the plaintiff's claims, assuring that it is an equal opportunity employer and bases its employment practices on non-discriminatory reasons. A spokesperson said that in 2014 alone the company had recruited over 2,600 U.S. hires.[108]