TCS pays $29.75 million to settle class action suit

Bangalore: Tata Consultancy Services, India’s top software services provider, said it agreed to pay $29.75 million to settle a class-action law suit in the United States, brought by two former non-US-citizen employees.

“The settlement is made without admitting any wrong doing by TCS,” the company said in a statement to the National Stock Exchange in Mumbai on Friday. It is subject to court approvals.

[caption id=“attachment_644927” align=“alignleft” width=“380”] The case was granted class-action status in April 2012 by California federal judge Claudia Wilken. Reuters[/caption]

The former employees had accused TCS in 2006 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.

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The case was granted class-action status in April 2012 by California federal judge Claudia Wilken. TCS had denied the allegations.

The case is Vedachalam vs Tata America International Corporation et al, US District Court, Northern District of California (Oakland), No. 06-963.

Reuters