The IT firm said in its filing that it has received a second supplementary notice of indemnification from a client claiming indemnity for an amount of $7,597,780 for the in-principle settlements that the client has reached with certain arbitration claimants concerning demands for arbitration of claims related to the alleged data breach. It also said that there is potentially an additional amount of $4,276,800 for settling demands by certain additional claimants with whom client has not yet reached an agreement in principle.
In October last year, the company during its earnings call said that it had received a notice from a client in the North America region seeking indemnification for third party claims and costs associated with a claimed breach of contract by the company. But the amount of claim was hitherto uncertain.
Coforge said, “The quantum of claims or the expected financial implication on the company of the class action suits already disclosed in the Regulation 30 Disclosure continues to remain unascertained at this stage. The Company is in discussions with its offshore counsel regarding such indemnity notice. 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.”
It added that as on the date hereof, the company was 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 the company.
