CSC agrees to pay $97.5M to settle class-action lawsuit
- By Washington Technology staff
- May 17, 2013
Computer Sciences Corp. has reached a $97.5 million agreement to settle a class-action lawsuit over alleged false statements about accounting and about the company’s performance on a multibillion dollar contract, Bloomberg Businessweek reported.
The settlement covers investors who acquired common stock from Aug. 5, 2008 to Dec. 27, 2011, Bloomberg Businessweek said, who claimed that company officials “made false or misleading statements or omitted to disclose material facts” regarding how effective internal controls were over financial reporting, and on the issue of the company’s performance on a $5.4 billion electronic patient records contract, a memo filed in support of the settlement was quoted as saying.
Computer Sciences Corp. took a $1.5 billion writedown on the health service contract for 2011, and the company’s annual report said that the company has been under investigation by the Securities and Exchange Commission for accounting issues in that contract, Bloomberg Businessweek reported.