Mphasis vs Coforge: US lawsuit over Schwab in 2026

What the dispute is about

Blackstone-backed Mphasis has filed a lawsuit in a US court against rival IT services firm Coforge and former Mphasis employee Brijesh Khergamker. Mphasis alleges breach of contract and misuse of confidential information. The case centres on restrictions tied to employees who worked on a key financial services client, Charles Schwab, which is a mutual client of both companies. Mphasis is seeking court-ordered relief to prevent certain work and client engagement for a defined period. The complaint also asks for restrictions around the handling of proprietary information. Coforge said it is evaluating potential counterclaims, according to a separate report cited in the provided material.

Key allegations made by Mphasis

Mphasis claims Coforge hired its former executives in violation of contract restrictions. The filing also asserts that Coforge gained access to confidential client information and proprietary data belonging to Mphasis. According to the complaint reviewed by Reuters, Mphasis argues that these actions created an "unfair competitive advantage" in IT services delivery. The filing states that at least four senior-level employees are referenced as having moved in a way that Mphasis disputes. The company has not provided further details on damages in the publicly reported filing summary. Coforge and Mphasis did not immediately respond to Reuters requests for comment.

What Mphasis is asking the US court to order

Mphasis is seeking injunctive relief aimed at limiting how Coforge can deploy certain former Mphasis executives on Charles Schwab work. It wants the court to prevent Coforge from employing two former Mphasis executives on Charles Schwab accounts and to bar the use of Mphasis’ confidential data. Mphasis also asked the court to restrain any use or disclosure of its proprietary information. Alongside that, it wants the immediate return of any such material that may be in the defendants’ possession. These remedies are aimed at preventing further alleged misuse while the dispute is addressed.

One-year restriction sought on Brijesh Khergamker

A central request in the case relates to former Vice President Brijesh Khergamker, who is named as a party in the lawsuit. Mphasis asked the court to bar Khergamker, for one year, from working directly or indirectly on the Charles Schwab account through Coforge or its affiliates. Mphasis also wants to prevent him from accepting business from Mphasis customers during the same period, saying this would violate his employment contract. The filing frames this as a non-compete style restriction tied to client-specific work. The court will consider whether injunctive relief is warranted under applicable law and the contract terms presented.

When the filing surfaced publicly

Reuters reported the filing was dated March 31. Although dated March, the document appeared in the government’s legal database only last week, according to Reuters. Indian newspaper Mint first reported the development on Wednesday, Reuters said. The reporting timeline matters because such disputes can remain out of public view until filings become accessible through official databases. That can affect when investors, customers, and employees first learn of the matter.

Damages, legal fees, and other costs

Beyond injunctive relief, Mphasis is also seeking compensatory damages. It also wants reimbursement of attorney fees and related costs, Reuters reported, though the filing summary did not specify amounts or further detail. In another example cited in the provided material, Wipro had sought Rs 25 crore in damages from its former CFO Jatin Dalal for breach of contract after he joined Cognizant. In the Mphasis matter, the relief described so far is primarily focused on stopping specific conduct and protecting confidential information.

Market moves reported alongside the news

Market data included with the report showed sharp movement in Coforge shares on the day of the Reuters story. The figures also show a smaller move in Mphasis and a marginal move in Charles Schwab.

Why such disputes are rising in Indian IT

Reuters linked the case to a broader trend in the Indian IT services industry, where demand has slowed and competition has intensified in recent years. As hiring competition grows, companies have increasingly sued executives for allegedly violating employment contracts. The report referenced an earlier dispute where Infosys filed a counterclaim against rival Cognizant, alleging anti-competitive practices and poaching of key executives. It also cited Wipro’s 2023 suit against its former CFO after he joined Cognizant, again framed as a contract-violation dispute. The Mphasis-Coforge matter fits into that pattern of litigation around senior talent movement and client-specific knowledge.

What investors and clients may watch next

The next developments are likely to come from court proceedings, any responses filed by Coforge and the named former employee, and whether the court grants interim injunctive relief. Coforge has indicated it is evaluating potential counterclaims, based on the provided material. Any court order restricting staffing on a shared client like Charles Schwab could have operational implications for delivery teams, depending on scope and duration. For now, the reported facts focus on the allegations, the requested remedies, and the timeline of the filing becoming public.

Conclusion

Mphasis has taken Coforge and a former Mphasis vice president to a US court, seeking a one-year bar on certain Charles Schwab-related work, limits on client solicitation, and protection and return of confidential information. The filing also seeks damages and legal cost reimbursement. The next confirmed steps will be the defendants’ formal responses and the court’s decision on whether to grant injunctive relief.