Coforge has said it has received an $11-million notice from a North American client over an alleged data breach. The IT company said the company intends to refuse the client’s demands regarding the arbitration claim resolutions.
In a regulatory filing dated August 6, Coforge said, “At this time, the company intends to refuse the client’s demands regarding the arbitration claim resolutions on the basis that, in the company’s view, such amounts are not reasonably subject to indemnification.”
Coforge also mentioned that the quantum of claims or the expected financial implications for the company of the class-action suit remain unascertained at this point. The company clarified it is not currently involved in any litigation or arbitration proceedings, and no tribunal, court, or agency has filed any action against it.
Meanwhile, Coforge continues to deliver services to the client, with no significant effect on revenue from this client.
For the quarter ending June 30, 2024, Coforge reported a 6 percent increase in net sales to Rs 1,209 crore, up from Rs 1,140 crore. However, net profit saw a sharp decline of over 61 percent, falling to Rs 81 crore compared to the previous year.
Shares of Coforge on Friday rose Rs 58.15 or 1 per cent to close at Rs 5,900 apiece on the BSE.
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