Mphasis Moves US Court Slamming Coforge Over Executive Poaching & Data Misuse

New Delhi: IT services provider Mphasis has approached a US court alleging that rival Coforge violated contractual obligations by hiring its former senior executives and gaining access to sensitive client-related information, according to multiple reports. According to reports, legal documents filed in March show that Mphasis has sought an injunction restraining Coforge from deploying two former Mphasis executives on projects linked to Charles Schwab, a client serviced by both firms.

The company has also requested the court to prevent any use of confidential business information allegedly obtained through those hires. Moreover, the lawsuit also names former Mphasis Vice President Brijesh Khergamker and seeks to prevent him from working on Charles Schwab outsourcing operations through Coforge for a period of one year. Mphasis has argued that such employment breaches the terms agreed upon in his earlier contract with the company.

Mphasis has further alleged that Coforge secured an unfair business advantage by recruiting multiple senior employees who had access to strategic and client-specific information. Besides injunctive relief, the company has sought monetary compensation along with legal costs and attorney fees.

Additionally, Coforge denied all allegations and intends to vigorously defend itself and its employee in the matter, while also evaluating potential counterclaims, according to reports. Notably, similar disputes have surfaced in recent years across the IT industry.

In 2024, Infosys filed a counterclaim against Cognizant, alleging anti-competitive conduct and executive poaching. Earlier, in 2023, Wipro initiated legal proceedings against former CFO Jatin Dalal after he joined Cognizant, citing alleged violations of contractual commitments.

Disclaimer: This story is from the syndicated feed. Nothing has been changed except the headline.