Cognizant $570 Million Trade Secrets Award Rejected by 2nd Cir.

Syntel Inc. undercut the basis for a Cognizant Technology Solution Corp. unit’s $570 million trade secrets award despite failing to escape liability, the Second Circuit ruled Thursday.

TriZetto Group Inc.'s compensatory damages award, based on costs Syntel avoided in developing the software at issue, was effectively punitive in nature because the secrets remain valuable, secret, and off-limits to Syntel, the US Court of Appeals for the Second Circuit said. That undermined both the $285 million compensatory award and the $285 million punitive award based on it, the court said.

The precedential ruling sends the case back to district court to ...