Computer Sciences Corporation Investor files Lawsuit against Directors

Jan. 16, 2012 - PRLog -- A current long term investor in NYSE- CSC shares filed a lawsuit against directors of Computer Sciences Corp alleging breaches of fiduciary duties in connection with alleged accounting problems.

If you are purchased Computer Sciences Corporation  shares prior to August 2010 and presently continue to hold those NYSE- CSC shares, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff the plaintiff alleges that the directors breach of fiduciary duty by allegedly failing to disclose alleged accounting and financial irregularities in the Managed Services Sector segment, primarily in the Nordic region, and Computer Sciences’ performance under its U.K. National Health Service agreement and alleged failure to maintain effective internal controls.  
The lawsuit by a current NYSE-CSC stockholder against directors of Computer Sciences Corp over alleged breaches of fiducayr duties follows a lawsuit filed earlier in 2011 only for investors who purchased Computer Sciences Corp. common stock between August 11, 2010 and May 25, 2011 over alleged violations of Federal Securities Laws by Computer Sciences Corp.
According to that complaint filed in the United States District Court for the Eastern District of Virginia the plaintiff alleges that Computer Sciences Corporation violated the Securities Exchange Act of 1934 by issuing between August 11, 2010 and May 25, 2011 false and misleading statements about its financial condition and prospects.

On May 2, 2011, Computer Sciences Corp. announced its fourth quarter 2011 financial results and reported that it was close to an agreement with the United Kingdom’s National Health Service on a revised contract and updated its fiscal 2011 guidance, announcing that it would miss its reduced fiscal 2011 revenue expectations by $100 million and earnings expectations by $0.45 per share.

CSC shares dropped from almost $51 per share in the end of April to $4.03 on May 3, 2011.

On May 25, 2011, after the market closed, Computer Sciences Corp issued a press release preannouncing its fourth quarter and fiscal 2011 financial results. Among other things, Computer Sciences Corp reported fourth quarter 2011 earnings results of $1.09 per share, which so the plaintiff, missed Wall Street consensus estimates of $1.16, and that fiscal 2011 earnings would be below Computer Sciences’ recent reduced forecast of $4.75 per share. In addition, Computer Sciences Corp. also disclosed that its Audit Committee had begun an internal investigation into accounting irregularities in one of its service sectors. In response to the Company’s May 25, 2011 disclosures, on May 26, 2011, the Company’s stock price fell $5.71 per share (or 12%) to close at $38.38 per share.

CSC stock dropped to $36.45 on May 26, 2011 and continued to decline to as low as $22.93 per share on November 25, 2011. .

Those who purchased Computer Sciences Corporation  shares prior to August 2010 and presently continue to hold those NYSE- CSC shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.