| Company: | Computer Sciences Corporation |
| Ticker Symbol: | CSC |
| Class Period: | Aug-11-10 to May-25-11 |
| Date Filed: | Jun-9-11 |
| Lead Plaintiff Deadline: | Aug-8-11 |
| Court: | Eastern District of Virginia |
| Allegations: | |
The Complaint alleges violations of the federal securities laws against Computer Sciences and its officers and directors for issuing materially false and misleading financial statements to investors. On February 1, 2011, Computer Sciences announced that the SEC had initiated a formal investigation into accounting irregularities at the Company. On May 2, 2011, the Company announced, among other things, that it was close to an agreement with the United Kingdom' National Health Service ("NHS") on a revised contract. On May 25, 2011, in connection with its announcement of financial results, which missed Wall Street consensus estimates, the Company disclosed that its Audit Committee had begun an internal investigation into accounting irregularities in one of its service sectors. The Company' shares declined 12% in response to this announcement.
According to the complaint, representations made by the Company during the Class Period were materially false and misleading because they failed to disclose true facts that were then known or recklessly disregarded by defendants, including: (a) the Company' historical and current financial results from its Managed Services Sector, which had been incorporated into the Company' consolidated financial statements, were false and in violation of the Company' internal accounting policies and Generally Accepted Accounting Principles; (b) the implementation of the Company' software at NHS was experiencing severe difficulties, rendering the Company unable to meet certain contractual deliverables and putting the entire contract with NHS at risk of termination; (c) the Company was experiencing substantial weakness in demand for its products and services, and new bookings for such were declining; and (d) in light of the foregoing, there was no reasonable basis for the fiscal 2011 revenue, earnings, bookings and margin forecasts made public during the Class Period.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
