Appeals court orders review of Epic's $280M award from Tata lawsuit: 5 details 

A U.S. appeals court on Aug. 20 ruled that the $280 million in punitive damages Indian consultancy group Tata was ordered to pay Epic Systems be reassessed, according to Law360

Five details: 

1. The U.S. Court of Appeals, 7th Circuit, in Chicago court ruled that the punitive damages are "constitutionally excessive" and ordered  a trial court to reassess them, Tata said in a regulatory filing, according to Economic Times

2. In October 2014, Verona, Wis.-based Epic filed a lawsuit against the Mumbai consultancy services company and Tata America International Corp., alleging that Tata employees stole trade secrets, confidential information, documents and data from Epic. 

3. A Wisconsin jury in April 2016 ruled in Epic's favors on seven claims, including breach of contract, misappropriation of trade secrets and unfair competition, and awarded the EHR vendor $240 million in compensatory damages and $700 million in punitive damages.

4. A Wisconsin judge in 2017 reduced Epic's punitive damages award to $420 million in order to comply with state laws that put a cap on the amount of punitive damages permissible in such cases, according to Economic Times

5. The appeals court Aug. 20 ruling upheld a compensatory damages award of $140 million, according to Economic Times. 

"The court of appeals’ decision confirms that it’s wrong to steal from others and protects Epic’s investment, allowing us to continue to develop software that improves healthcare around the world," Kyle Kappes, general counsel at Epic, said in an emailed statement to Becker's. "It also sends a positive message to innovators working to solve significant challenges that intellectual property will be protected." 

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