Litigation Background

This disclosure provides an update on the complaint filed by Natsoft Corporation and Updraft LLC alleging patent infringement and breach of contract with an initial claim of USD 500 million. The company had made previous disclosures on this matter dated October 01, 2025 and December 13, 2025.

Court Decision and Current Status

Date of Court Decision: June 9, 2026

Court: United States District Court for the Northern District of Illinois

Key Developments:

  • The Court has dismissed all federal patent-related claims in their entirety
  • The Court concurred that the asserted patent claims are not eligible for patent protection as they relate to abstract subject matter
  • The principal claims forming the basis of the litigation (patent infringement claims spanning nine patents across two patent families) stand dismissed
  • Consequent to the dismissal of federal claims, the Court declined to exercise jurisdiction over related state law claims (including contractual and business claims)
  • The state law claims were dismissed without substantive adjudication at this stage
  • The Court has granted plaintiffs an opportunity to file an amended complaint within the prescribed timeline

Company's Position and Response

Hexaware maintains that:

  • Their platforms (Amaze®, Tensai®, and RapidX®) are the product of original engineering and substantial investment
  • The platforms do not infringe any Natsoft or third-party intellectual property
  • The company has obtained U.S. patent protection for methods embodied in its Amaze® and Tensai® platforms
  • An additional U.S. patent related to Tensai® has been recently allowed and expected to issue
  • The lawsuit was called meritless when filed and the company expected to be vindicated

Financial and Operational Impact

As explicitly disclosed: "The litigation has caused no material change to the Company's operations, ability to serve customer commitments, partner programs, or financial position, and the Company anticipates none."

Forward-looking Statements

The company will continue to monitor developments closely and take appropriate actions as necessary. If plaintiffs file an amended complaint, the company indicates it will maintain the same defensive position.

Additional Information

A press release on the subject matter is enclosed as Annexure A. This information is also hosted on the Company's website at www.hexaware.com.