SEBI issued a warning to TCS for not adequately disclosing the damages in the 2016 Epic Systems case to investors. This case pertains to 2016 case against Epic Systems. The disclosure to the shareholders at that point of time did not mention that a penalty of $940 million was imposed on TCS as part of the verdict. In the quarterly results declared two days later on, $940 million was shown as part of contingent liabilities. In a related disclosure dated 1 October, 2017, TCS mentioned that the court significantly reduced compensatory and punitive damages to $420 million. SEBI is of the view that even the reduced penalty was significant and amounted to more than 12% of the net profits for the full year. Hence SEBI is of the view that the disclosures made by TCS were inadequate, inaccurate and tried to confuse the investors. Epic had filed a lawsuit in 2014 over stealing of intellectual property.