BFTA Obtains Distribution of $97.5 Million Settlement in CSCAugust 27, 2014
On August 27, 2014, BFTA, as counsel for Lead Plaintiff and Class Representative Ontario Teachers’ Pension Plan Board, secured the Court’s approval for distribution of a $97.5 million settlement to injured shareholders of Computer Science Corporation (“CSC”).
BFTA attorneys previously led a class of investors in litigation against CSC, a company that provides IT consulting and outsourcing services. Plaintiffs alleged that CSC and certain senior executives misrepresented the truth about the state of its significant contract with the U.K. National Health Services, as well as the troubled state of its internal controls, thus fraudulently inflating its stock price. When the truth reached the market that CSC could not in fact delivery on the contract it held with the U.K. National Health Services, and that it was not properly accounting for that contract, the price of CSC’s common stock dropped by 50%.
After extensive litigation that reached the precipice of trial, Defendants agreed to pay $97.5 million to settle the matter with the Class. The settlement is the third largest all cash recovery in a securities class action in the Fourth Circuit, resolved all claims in the action and was approved by the Honorable T.S. Ellis, III of the United States District Court for the Eastern District of Virginia on September 20, 2013.