IT services firm Mphasis has moved a US court against rival Coforge, alleging that the company violated contractual obligations by recruiting its former senior executives and gaining access to sensitive client-related information, according to multiple reports. Legal documents filed in March indicate that Mphasis has sought an injunction to restrain Coforge from deploying two former Mphasis executives on projects linked to shared client Charles Schwab.

Key Allegations in the Lawsuit

Mphasis has specifically named former Mphasis Vice President Brijesh Khergamker in the lawsuit, seeking to prevent him from working on Charles Schwab outsourcing operations through Coforge for a period of one year. The company argues that such employment directly breaches the contractual terms Khergamker agreed to during his tenure at Mphasis.

Beyond the injunction, Mphasis has alleged that Coforge secured an unfair competitive advantage by recruiting multiple senior employees who had access to strategic and client-specific information. The firm has also requested the court to prohibit any use of confidential business information allegedly obtained through these hires.

Relief Sought by Mphasis

In addition to injunctive relief, Mphasis has sought monetary compensation along with legal costs and attorney fees. The company contends that Coforge's actions caused material harm to its business interests, particularly with respect to its relationship with Charles Schwab, a client reportedly serviced by both IT firms.

Coforge's Response

Coforge has denied all allegations and stated its intention to vigorously defend itself and its employee in the matter, according to reports. The company is also reportedly evaluating potential counterclaims against Mphasis, signalling that the legal battle could intensify in the coming months.

A Growing Trend in Indian IT

This dispute is not an isolated incident — it reflects a broader pattern of legal confrontations over executive mobility and intellectual property within India's IT sector. Notably, in 2024, Infosys filed a counterclaim against Cognizant, alleging anti-competitive conduct and executive poaching. Earlier, in 2023, Wipro initiated legal proceedings against former CFO Jatin Dalal after he joined Cognizant, citing alleged violations of contractual commitments. This is the third such high-profile inter-firm legal dispute in the Indian IT industry in as many years. As competition for senior talent intensifies, such contractual conflicts are expected to become more frequent across the sector.