A US court has directed Sterlite Technologies' overseas arm, backed by Vedanta Group, to pay approximately £74.8 million in damages to Prysmian, a US-based company, for violating trade secret regulations. This information was revealed in a regulatory filing and a statement from the plaintiff.
Additionally, the court imposed an approximately £155,000 penalty on Stephen Szymanski, the executive vice president for the Americas Region at Sterlite Technologies Inc (STI), for misappropriating Prysmian's trade secrets.
Sterlite Technologies Inc (STI), the US subsidiary of Sterlite Technologies (STL), has contested the ruling and may consider an appeal.
In a statement, Prysmian mentioned that a South Carolina jury, following a three-week trial in the District Court of Columbia, South Carolina, ruled in its favour on August 9.
"The jury determined that Sterlite was unjustly enriched by taking Prysmian's trade secrets and awarded USD 96.5 million in damages against Sterlite Technologies, Inc. Additionally, the jury found that Stephen Szymanski had been unjustly enriched by misappropriating Prysmian's trade secrets," Prysmian stated on August 12.
The court further imposed £155,000 penalty against Szymanski personally. "Szymanski led Prysmian's optical fibre cable business in North America and left Prysmian for Sterlite, a direct competitor, in August 2020," the statement added.
Szymanski joined Sterlite Technologies Inc. in September 2020.
In a regulatory filing on August 10, Sterlite Technologies Ltd. (STL) informed the BSE that it is not a party to this dispute and no claims are being made against it. "STI believes the judgment is not supported by the testimony and evidence presented at trial and intends to vigorously pursue all available post-trial remedies, including an appeal," the filing stated.
STL reported a consolidated loss of £4.4 million and a revenue decline of about 20 percent, amounting to £11.2 million, in the first quarter ended June 30, 2024.
(With inputs from PTI)
