IT services provider Mphasis has taken legal action against rival Coforge, alleging a breach of contract. Mphasis claims that Coforge hired its former senior executives, allowing access to sensitive client information, including projects related to Charles Schwab. The lawsuit also targets former Mphasis Vice President Brijesh Khergamker, seeking to prevent his involvement in Charles Schwab operations through Coforge for a year due to contract breaches.
Mphasis further accuses Coforge of gaining an unfair advantage by recruiting senior employees with access to strategic data. Apart from seeking injunctive relief, Mphasis is pursuing monetary compensation, legal costs, and attorney fees. In response, Coforge has refuted the allegations and plans to defend itself vigorously, considering potential counterclaims.
Similar disputes have emerged in the IT industry, with Infosys previously filing a counterclaim against Cognizant in 2024 for alleged anti-competitive behavior and executive poaching. In 2023, Wipro also initiated legal action against its former CFO, Jatin Dalal, after he joined Cognizant, citing contractual violations.
