Mphasis has filed a lawsuit against rival IT services firm Coforge in a United States court, alleging that Coforge hired its senior executives in violation of contractual restrictions and gained access to confidential client information in the process.
The case, filed on March 31 but only recently added to the government’s legal database, seeks injunctive relief to stop Coforge from deploying two former Mphasis executives on accounts linked to Charles Schwab, a client served by both companies.
The petition also names Brijesh Khergamker, a former Mphasis Vice President, and seeks to bar him from working on Charles Schwab outsourcing operations through Coforge. Mphasis has alleged that Coforge gained an unfair competitive advantage in IT services delivery by hiring at least four senior employees who carried strategic and client-specific knowledge into their new roles.
In an emailed statement on Wednesday, Coforge denied all allegations of wrongdoing. The company has reportedly said it intends to vigorously defend itself and the named employee and is also evaluating potential counterclaims. Coforge added that the client mentioned in the complaint has been an existing client for many years and that it intends to grow that relationship.
Mphasis has since responded that its top priority is to protect its clients and that it would take necessary action to enforce its rights when no conciliatory alternative was left.
In addition to injunctive relief, Mphasis is seeking compensatory damages along with reimbursement of attorney fees and related legal costs, according to the filing.
