Mphasis has filed a lawsuit in a US district court in Colorado against rival information technology (IT) company Coforge and former vice-president Brijesh Khergamker, alleging breaches of employment contracts and the misuse of confidential client information.
The Complaint
Filed on 31 March 2026, the lawsuit, which only appeared in the government's legal database recently, names Coforge BPM Inc and Mr Khergamker as defendants. Mphasis alleges that Coforge has been systematically recruiting its senior executives to gain an ‘unfair competitive advantage’ in IT services delivery, specifically naming at least four senior-level employees.
Mr Khergamker, who joined Mphasis in 2013 and rose to VP handling IT and sales-related work for Charles Schwab, a major brokerage firm and a mutual client of both companies—allegedly joined Coforge in July last year, breaching a contractual restriction that bars employees from working for rivals less than a year after leaving.
Another former employee, Babu Mani, who held a senior delivery role, is also accused of joining Coforge under similar circumstances. Additional executives named include associate vice president Himanshu Gupta, chief revenue officer for healthcare GTM, and platforms head Sudeep Mehandru.
What Mphasis Is Seeking
Mphasis has sought multiple forms of relief from the Court, including injunctive relief to prevent Mr Khergamker from working directly or indirectly on the Charles Schwab account through Coforge or any of its affiliates for one year. It also seeks restrictions on soliciting Mphasis clients or employees, a bar on the use or disclosure of Mphasis' proprietary and confidential information, immediate return of any confidential materials allegedly held by the defendants, and compensatory damages along with reimbursement of attorney fees.
Coforge Pushes Back
Coforge has denied all allegations, stating it intends to ‘vigorously defend’ itself and its employee. The Noida-based company noted that Charles Schwab is an existing, long-standing client of Coforge — not one acquired through Mphasis. It further described itself as ‘an action-oriented and aspirational employer brand’, adding that several senior leaders have voluntarily joined Coforge from competing companies in recent years. Coforge also says it is evaluating potential counterclaims in the matter.
A Growing Trend in Indian IT
This lawsuit is part of a broader pattern of legal disputes over talent poaching in the Indian IT industry. Last year, Infosys filed a counterclaim against Cognizant, alleging anti-competitive practices and executive poaching, following departure of Ravi Kumar S to become Cognizant's chief executive officer (CEO). In September 2023, Wipro sued its former chief financial officer (CFO), Jatin Dalal, for joining Cognizant in alleged breach of his employment contract — both cases were eventually settled. In early 2021, Accenture filed a lawsuit in New York against a former employee for joining Wipro shortly after leaving.
The legal battle comes even as Coforge reported strong financial results, posting a consolidated net profit of ₹612.3 crore in the fourth quarter (Q4) of FY25-26, a multi-fold jump from ₹261.2 crore in the same quarter last year, aided by a one-time tax gain and solid operations. Revenue from operations rose 30% year-on-year to ₹4,450.4 crore.
The case underscores the intensifying competition for talent and clients in the Indian IT sector, where non-compete clauses and confidentiality agreements are increasingly being tested in court.
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