Thursday, 27 October 2011

CSC Class Action Continues

The class action filed against CSC continues. Those who have something to say that may be enlightening might want to contact the lead law firm filing the case Labaton Sucharow.
Contact details are:

http://www.labaton.com/en/contact/

Labaton Sucharow LLP
140 Broadway
New York, NY 10005



tel: 212-907-0700
toll-free: 888-753-2796
fax: 212-818-0477
email:
info@labaton.com
toll-free settlement helpline: 888-219-6877
email:
settlementquestions@labaton.com
300 Delaware Avenue
Suite 1225
Wilmington, DE 19801
tel: 302-573-2540
fax: 302-573-2529

Saturday, 22 October 2011

Mike Laphen's rewards for failure at CSC

CEO Mike Laphen's massive lifetime rewards for failure at CSC
Mike Laphen's departure from CSC is overdue given the disastrous results of his period of "leadership", but he is being royally rewarded for his repeated failures.
CSC has submitted an 8K filing to the SEC outling the terms of his departure and the Succession Agreement it has signed with him.
Mr Laphen will receive:
� earned base salary, annual bonus for a completed fiscal year, and benefits under the Company's employee benefit plans for all of FY2012
� a pro-rated annual incentive award for FY2012,
� a severance payment of two times the sum of (i) base salary plus (ii) target annual incentive award estimated at $6.75 million
� COBRA premiums for 18 months following the Retirement Date.
Mr. Laphen will be also entitled to retirement benefits resulting in an estimated annuity of $81,000 per month for life
Full details of the SEC filing are disclosed on  http://biz.yahoo.com/e/111019/csc8-k.html
 And no, it is not a typo. He really will get $81,000 per month for the rest of his life.
Shareholders have seen the value of their investment drop by 50% during Mr Laphen's tenure. Employees have lost their jobs or had their salaries reduced during this time.
So there are no prizes for guessing their views on Mr Laphen's severance package, unless they think a cost of around $40million for his departure is good value for CSC.
posted by Littlejohn
 

Saturday, 15 October 2011

CSC Denmark Heading For Disaster

>CSC (Denmark) heading for disaster?
 
That is the headline of the Danish Computerworld publication of October 14th,  describing CSC Denmark's financial situation as "disastrous"  with an accumulated deficit of over US $65million, a solvency ratio below 3%  and no profits for the past 5 years.
 
The article also refers to a rift between the management and the employees, the recent strike action and the alleged accounting irregularities. Additionally the flagship Tax and Customs project is in big trouble with a government official saying that CSC is wilfully hiding the true state of the project from the customer,  Shades of CSC's failed NHS project in the UK??.
 
 
The full Computerworld article can be found on:
 
CSC could take away the concerns about the financial viability of their Denmark operation by simply injecting fresh capital. So why are they not doing this? Are they not prepared to stand behind their Danish subsidiary and guarantee its viability?
 
 
To misquote Marcellus in Shakespeare's Hamlet "Something seems rotten in the state of CSC Denmark".


Thursday, 6 October 2011

NHS IT Programme according to Times of London

The Times on 23 September had the headline “Connecting to Nowhere”.
It said:
“The comically misnamed Connecting for Health will continue to honour its contracts with big companies and to swallow taxpayers’ money for some time to come: up to £11bn on current estimates. The figure demonstrates the truly egregious scale of the previous Government’s incompetence on this issue: this vast sum seems to have been committed irrevocably, even though the project has never achieved its objectives.
“The story is a dismal catalogue of naivity, ambition and spinelessness. NHS managers and officials …were [not] brave enough to question the direction of travel at crucial moments when IBM and Lockheed pulled out of the project early on. Whitehall was sold a grand vision by consultants, software and technology companies charging grandiose fees. It signed contracts that appear to have been impossible to break when the promised land did not appear. Yet no one seems responsible. No one has been sacked. Most of the officials involved have long moved on…
“There have been spectacular failures in the private sector too. But businesses, with tighter controls on spending, tend to halt things earlier if they are going wrong. Many prefer off-the-shelf systems such as SAP or Oracle, which are tried and tested. They know that it is cheaper to adapt their processes, not the software.
“This newspaper is in favour of serious investment in technology, which could play an important part in economic growth. The NHS debacle has done enormous damage to this country’s reputation for expertise in IT systems. The lessons for the future are clear. Governments must hire people who can make informed and responsible procurement decisions. Patients, in every way, are going to end up paying the price.”

Sunday, 2 October 2011

Russ Owen MSS Chief at CSC new role

One of our commentators has found the full text of Russ Owen's 'role change'. We think it worth giving this information, which is all in the public domain, a post to itself.


 http://phx.corporate-ir.net/phoenix.zhtml?c=109974&p=IROL-secToc&TOC=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDAwMjMwODItMTEtMDAwMDgxL3RvYy9wYWdl&ListAll=1

Did CSC fraudently conceal from investors the true state of the NHS contract?


 CSC is facing a (or is it another?) class action lawsuit which alleges that its Board fraudulently concealed from investors the true situation of the NHS contract.
According to an article in The Guardian, a respected UK broadsheet newspaper, CSC knew as early as May 2008, through reports and testing, that the Lorenzo package was "dysfunctional and undeliverable". It states that a member of the CSC project review team wrote directly to CEO Michael W Laphen telling him that the project was on a "death march".
Full details on
Will CSC tell us exactly what action Mr Laphen took when he received this news?