Indian mid-tier software firm Mphasis has filed a lawsuit against rival Coforge in a U.S. court, claiming that the latter had hired its executives in violation of contract restrictions and gained access to confidential client information.
In a filing dated March 31, Mphasis sought injunctive relief to prevent Coforge from employing two of its former executives on Charles Schwab accounts - a mutual client of both companies - and from using Mphasis’ confidential data.
It also asked the court to bar former Vice President Brijesh Khergamker, who is named as a party in the case, from working in Charles Schwab’s outsourcing operations through Coforge for a year or accepting business from Mphasis customers as it violated his employment contract.
Coforge and Mphasis did not immediately respond to Reuters’ requests for comment.
Indian newspaper Mint first reported the development on Wednesday. Although dated March, the filing appeared in the government’s legal database only last week.
Mphasis seeks damages and restrictions
Mphasis also sought compensatory damages and reimbursement of attorney fees and related costs, according to the filing, which did not provide further details.
Mphasis said that Coforge gained an “unfair competitive advantage” in the delivery of IT services by hiring at least four senior-level employees mentioned in the filing.
Rising legal disputes in Indian IT sector
As demand for Indian IT services has slowed and competition intensified in recent years, companies have increasingly sued executives for violating their employment contracts.
Early last year, Infosys, India’s second-largest IT firm, filed a counterclaim against rival Cognizant, saying that the U.S.-based company was engaging in anti-competitive practices and poaching key executives.
In 2023, Wipro sued former Chief Financial Officer Jatin Dalal after he joined Cognizant, claiming that the move violated the terms of his employment contract.
Published on May 7, 2026