A lawsuit was filed by a current investor in NYSE:CSC shares over alleged breaches of fiduciary duties by certain directors at Computer Sciences over alleged accounting and financial irregularities.
San Diego, CA -- (SBWIRE) -- 01/30/2012 -- The Shareholders Foundation announces that 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 and financial irregularities.
Investors who purchased Computer Sciences Corporation (NYSE:CSC) 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(at)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.
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.
Then 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 (NYSE:CSC) shares prior to August 2010 and presently continue to hold those NYSE: CSC shares, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego