Indian IT firm Coforge stated in an exchange filing on Tuesday that it received a supplementary notice of over $11 million from a client in the North American region for an alleged data breach.
The company, which had originally disclosed the notice in an earnings call held in October last year, received the notice of indemnification from said client.
What the filing says
“The client is claiming indemnity for $7,597,780 for the in-principle settlements they reached with certain arbitration claimants concerning demands for arbitration of claims related to the alleged data breach. They are also claiming an additional amount of $4,276,800 for settling demands by certain additional claimants with whom the client has not yet reached an agreement in principle,” said Coforge in the filing.
Additionally, it said that the quantum of claims or the expected financial implication on the company of the class action suits already uncovered in regulation 30 disclosure will remain unascertained for now.
Coforge also stated that it is in discussions with its offshore counsel regarding the indemnity notice. “The company intends to refuse the client’s demands regarding the arbitration claim resolutions because, in our view, such amounts are not reasonably subject to indemnification,” it added.
The company also noted on the date hereof, that it is not a party to any litigation or arbitration proceeding and there is no tribunal, court, or agency where any litigation or arbitration proceeding has been filed against it. Coforge added that the company will continue to provide services to the client regularly with no impact on the revenues received from them.