US client sends Rs 92 crore-plus notice to Indian IT company over hacking claims

Coforge said it has received a notice from a North American client claiming an amount that would go up to more than $11 million (Rs 92 crore). In an exchange filing recently, the Indian IT company said that the customer is claiming indemnity for an amount of $7,597,780 for the in-principle settlements that it has reached with certain arbitration claimants over an alleged data breach.
The company informed the National Stock Exchange (NSE) that there is a potential claim of $4,276,800 for settling demands by certain additional claimants with whom the client has not yet reached an agreement in principle.

What Coforge said in its filing

“Pursuant to the Regulation 30 Disclosure, the Company had informed the stock exchanges regarding the notice of indemnification received by the Company (including its material subsidiary Coforge Inc. (“Company”)) from a client in the North America region (“Client”). In this regard, please note that the Company has now received a supplementary notice of indemnification from the said Client (“Notice”),” the company said in its exchange filing.
“The quantum of claims or the expected financial implication on the Company of the class action suits already disclosed in the Regulation 30 Disclosure continues to remain unascertained at this stage. The Company is in discussions with its offshore counsel regarding such indemnity notice,” Coforge said.
It further added, that the company ‘at this point’ intends to refuse the client’s demands regarding the arbitration claim resolutions as Coforge says that these amounts are not reasonably subject to indemnification.
In its exchange filing, the company clarified that, as of now, it is not involved in any litigation or arbitration proceedings, and no tribunal, court, or agency has initiated any action against it.