By David Sachs

Shares in Atos rose Friday after the company said a U.S. court vacated an initial judgment that ordered its subsidiary Syntel to pay $570 million in damages.

At 0842 GMT, shares were up 5.5% at EUR13.92, having earlier risen as much as 8.9%.

The French information-technology company said a U.S. appeals court vacated a decision, made by a district court in New York, that found Atos liable to pay damages to U.S. healthcare-software company TriZetto, a subsidiary of Cognizant Technology Solutions. TriZetto had accused Syntel of misappropriating trade secrets and copyright infringement before Atos owned the company.

The circuit court sent the case to the district court to decide if any other damages are still appropriate. Atos believes the maximum amount of damages legally available to TriZetto is around $8.5 million, it said.

"This favorable decision considerably removes uncertainty for Atos and its stakeholders," the company said.

Representatives from Cognizant didn't respond to a request for comment Friday outside of normal U.S. business hours.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

May 26, 2023 05:16 ET (09:16 GMT)

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