A class action lawsuit was filed against CSC by the law firm of Robbins, Geller Rudman & Dowd LLP on June 3. It seeks to recover damages on behalf of all purchasers of CSC common stock during the period 11 August 2010 and 25 May 2011. .
The lawsuit alleges that during this period:
1. CSC and certain of its officers and directors made false and misleading statements about the Company’s financial condition and prospects
2. CSC failed to disclose the true facts, or the facts were recklessly disregarded
3. there was no reasonable basis for the fiscal 2011 revenue, earnings, bookings and margin forecasts
4. as a result, CSC stock traded at artificially inflated prices, reaching a high of $56.54 per share.
Full details of the complaint can be found on http://eon.businesswire.com/news/eon/20110603006045/en .
The past weeks have been difficult for CSC, with two profit warnings, disappointing Q4 FY11 results, the NHS project issues, the accounting irregularities in Nordic (and Managed Services?) and then on June 1 the major strike at CSC Denmark. Now this class action law suit.
What will their next surprise be?
posted by Littlejohn