N@N

Robbins Geller Rudman & Dowd LLP Files Expanded Class Period Class Action Suit Against Computer Sciences Corporation

^{Published on 2011-07-21 14:45:40 - Market Wire}
 

SAN DIEGO--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/computersciences/ ]) today announced that a class action has been commenced in the United States District Court for the Eastern District of Virginia on behalf of purchasers of Computer Sciences Corporation (aCSCa) (NYSE:CSC) common stock during the period between May 21, 2009 and May 25, 2011 (the aClass Perioda).

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from June 3, 2011. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffa™s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [ djr@rgrdlaw.com ]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at [ http://www.rgrdlaw.com/cases/computersciences/ ]. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges CSC and certain of its officers and directors with violations of the Securities Exchange Act of 1934. CSC is a leader in the information technology and professional services industry.

The complaint alleges that during the Class Period, defendants made false and misleading statements about the Companya™s financial condition and prospects. As a result of defendantsa™ false statements, CSC stock traded at artificially inflated prices, reaching a high of $58.13 per share during the Class Period.

On February 1, 2011, CSC issued a press release announcing that the SEC had initiated a formal investigation into accounting irregularities at the Company. On February 9, 2011, the Company announced its third quarter 2011 financial results, which missed analysts consensus revenue expectations, and reduced fiscal 2011 bookings estimates by $2.5 billion. The Company also announced that it would cut fiscal 2011 revenue guidance by $300 million, that the impact of the accounting irregularities in its Nordic region were worse than previously disclosed, and that the Company had missed a delivery milestone with a large client, the United Kingdoma™s National Health Service ("NHS"). On this news, CSC's stock price declined more than $8.00 per share. On May 2, 2011, the Company announced that it was close to an agreement with the NHS 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. Then, on May 25, 2011, after the market closed, the Company issued a press release pre-announcing its fourth quarter and fiscal 2011 financial results. Among other things, the Company reported fourth quarter 2011 earnings of $1.09 per share, which missed Wall Street consensus estimates of $1.16 per share, and that fiscal 2011 earnings would be below the Companya™s recently reduced forecast of $4.75 per share. In addition, the Company also disclosed that its Audit Committee had begun an internal investigation into accounting irregularities in one of its service sectors. In response to the Companya™s May 25, 2011 disclosures, on May 26, 2011, the Companya™s stock price fell $5.71 per share (or 12%) to close at $38.38 per share.

According to the complaint, the Class Period representations by defendants concerning the financial condition and prospects for CSC were each materially false and misleading when made because they failed to disclose the true facts, which were then known to or recklessly disregarded by defendants, including: (a) the Companya™s historical and current financial results from its Managed Services Sector, which had been incorporated into the Companya™s consolidated financial statements, were false and in violation of the Companya™s internal accounting policies and Generally Accepted Accounting Principles; (b) the implementation of the Companya™s Lorenzo 1.9 software at the NHS was experiencing severe technical difficulties, rendering the Company unable to meet its customer contract milestones such that the entirety of the contract was at risk of termination; (c) the Company was experiencing significant weakness in demand for its products and services, and bookings for new business for its products were declining; and (d) in light of (a)-(c) above, there was no reasonable basis for the fiscal 2011 revenue, earnings, bookings and margin forecasts made to the public during the Class Period.

Plaintiff seeks to recover damages on behalf of all purchasers of CSC common stock during the Class Period (the aClassa). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site ([ http://www.rgrdlaw.com ]) has more information about the firm.