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IT services firm Mphasis has filed a lawsuit in a US court against rival Coforge, alleging it violated contractual obligations by hiring former senior executives and misusing sensitive client information. Mphasis is seeking an injunction to stop Coforge from deploying two ex-employees, including VP Brijesh Khergamker, on Charles Schwab projects for one year. Coforge has denied the allegations.

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.