TCS offers $29.75 mn to settle suit by former US staff

Tata Consultancy Services, India's top software services company, said today it has agreed to pay $29.75 million to settle a class-action lawsuit in the United States, brought by two former non-US-citizen employees who alleged violation of their rights.

"TCS has filed a settlement with the court in a class action law suit pending in US district court, California, for approval of the court. The settlement is made without admitting any wrongdoing by TCS," the company said in a statement to the Bombay Stock Exchange.

The former employees, Gopi Vedachalam and Kangana Beri had filed a lawsuit in 2006 accusing TCS of forcing all non-US-citizen workers to sign over their US federal and state tax refund cheques to the company. Tata also deducted their Indian wages from their compensation, the suit alleged.

The case was granted class-action status in April 2012 by California federal judge Claudia Wilken.

The settlement is subject to fairness review and approval by the court and settlement will not become effective until and unless approval by the court is given, the TCS statement added.

"TCS believes that it has always acted appropriately notwithstanding the allegations in the case," it said.

The company said it has admitted no wrongdoing and none has been found by the court. It agreed to settle this matter to eliminate any ongoing distraction to its associates and the management.