Investor Lawsuit Against Computer Sciences to Proceed
A Virginia court rejected some claims but allowed a putative class action lawsuit against Computer Sciences Corp. (NYSE: CSC) to proceed, according to an SEC filing.
The Falls Church-based company said the United States District Court for the Eastern District of Virginia, on Aug. 29, granted its motion to dismiss the plaintiff’s claims of alleged misrepresentations and omissions regarding its operations in the Nordic Region.
However, the court allowed similar allegations related to the company’s internal controls and contract with the U.K.’s National Health Service, and granted the lead plaintiff, Ontario Teachers’ Pension Plan Board, time to amend its complaint by Sept. 12. The court denied a motion for class certification without prejudice.
Last year, a court consolidated four lawsuits against the company and named Ontario Teachers’ Pension Plan Board as the lead plaintiff.
The suits allege that Computer Sciences and some of its executives deliberately concealed information and misled shareholders about the company’s financial problems, specifically that it would be unable to deliver on a contract with the NHS. This led the company’s share price to artificially rise, causing losses when it subsequently plunged.
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