Hexaware wins US patent case as 9 claims are dismissed

What happened in the US court

Hexaware Technologies Limited (NSE: HEXT) said the United States District Court for the Northern District of Illinois dismissed all claims brought by Natsoft Corporation and its affiliate, Updraft, LLC. The company disclosed that the decision was issued on June 9, 2026, and covers claims against Hexaware Technologies Limited and its subsidiary, Hexaware Technologies Inc. Hexaware described the case as meritless when it was filed and said it expected to be vindicated. The order dismisses Natsoft’s patent infringement allegations, which the company said spanned nine patents across two patent families.

For investors, the key takeaway is that the federal claims that formed the backbone of the dispute were thrown out at the motion-to-dismiss stage. Hexaware also said the litigation has caused no material change to its operations, customer commitments, partner programs, or financial position, and it anticipates none.

Why the patent claims were dismissed

According to Hexaware’s disclosure, the court’s decision turned on a deficiency in Natsoft’s patents. It found that the asserted patents claimed broad, abstract ideas rather than a specific, concrete invention. On that basis, the patents were deemed ineligible for protection under US law.

Hexaware added that the finding relates to the breadth and validity of Natsoft’s patents, not the originality of Hexaware’s platforms. In other words, the ruling addressed whether Natsoft’s claims described patent-eligible subject matter, rather than making any determination about the underlying software platforms’ novelty from Hexaware.

What happened to the state-law claims

Hexaware said the court declined to retain jurisdiction over related state-law claims once the federal patent claims were dismissed. As a result, those state-law claims were dismissed as well. This matters because it removes the remaining claims from the same federal court proceeding, at least for now.

The company’s update indicates the case is not fully closed yet, because the plaintiffs have been given time to file an amended complaint that adds a new federal claim. If the plaintiffs do not do so, Hexaware said the court is expected to enter final judgment.

Timeline: from motion to dismiss to the June 2026 order

Hexaware said the ruling follows the motion to dismiss it filed in December 2025. Separate reporting in the provided material also noted that Hexaware moved the court to dismiss a patent infringement lawsuit seeking more than $100 million in damages, and argued that the inventions as claimed by Natsoft were not patentable under US law.

That context is relevant because the June 2026 dismissal is framed as an outcome aligned with Hexaware’s legal strategy from late 2025. The company’s June 12, 2026 announcement positions the order as a confirmation of its earlier stance that the claims did not meet the requirements for patent eligibility.

The $100 million damages claim and why it mattered

The exchange filing and press release references in the provided text indicate the claims initially sought $100 million for alleged patent infringement. That figure is significant for any listed Indian IT services company because it represents a large potential litigation exposure.

With the federal claims dismissed, the principal basis for that damages claim has been cut back at this stage of the proceedings. However, the case’s final procedural endpoint depends on whether the plaintiffs file an amended complaint adding a new federal claim within the time granted by the court.

Stock context: where Hexaware traded around the news

Hexaware Technologies’ share price was cited at ₹502.25 as of June 12, 2026. The stock’s intraday movement was reported between ₹498.00 (day’s low) and ₹521.10 (day’s high). The material also cited a 52-week high of ₹900.00 and a 52-week low of ₹400.20.

A separate “Historical Stock Returns” snapshot in the provided text showed 1-day returns of +1.58%, 6-month returns of -33.91%, 1-year returns of -34.16%, and 5-year returns of -39.76%. These figures frame the court development against a broader period of weak longer-term returns, while showing a positive move over a very short window.

Financial snapshot cited in the material

The provided text reported that Hexaware Technologies Ltd’s net profit rose 7.46% year-on-year to ₹351.60 crore in Q4 2025-2026. It also reported a 20.45% quarter-on-quarter jump in net profits versus the prior three-month period.

While the court decision is a legal development rather than an operating update, Hexaware stated that the litigation has not caused any material change to its operational ability, customer commitments, partner programs, or financial position.

What broker notes in the material indicated

The material included two brokerage references dated May 2026. ICICI Securities Limited listed a target price of 580 with an upside of 18.31% (dated 08 May 2026). Motilal Oswal listed a target price of 570 with an upside of 16.27% (dated 07 May 2026).

These targets were not presented as reactions to the June 9 dismissal, but they provide a contemporaneous view of how some broker models were framed around that time.

Key facts table

Why this development matters for investors

For Hexaware, the dismissal reduces a large overhang linked to a $100 million damages claim, at least at the current stage. The court’s reasoning, as described by the company, focuses on patent eligibility and the risk that broad software claims can be rejected as abstract ideas under US law.

Hexaware’s statement that operations and financial position saw no material change is also important, because it frames the litigation as not disrupting service delivery or partner programs. The next procedural milestone is whether Natsoft and Updraft file an amended complaint adding a new federal claim within the time granted by the court, after which a final judgment could follow if no amendment is filed.

Conclusion

Hexaware said a US federal court dismissed all claims in Natsoft and Updraft’s case, including patent infringement allegations spanning nine patents. The court’s finding, as described by Hexaware, was that the asserted patents were too abstract to qualify for patent protection, and related state-law claims were also dismissed. The company said the litigation has not materially affected operations or financial position. The next step is the plaintiffs’ decision on whether to amend the complaint with a new federal claim; if they do not, the court is expected to enter final judgment.