Bloomberg News

CSC Gets Notice From SEC of Potential Enforcement Action (2)

December 12, 2013

Computer Sciences Corp. (CSC:US) said the U.S. Securities and Exchange Commission may take action against the company as part of an accounting probe.

CSC, the technology consultant whose clients include NASA and Avis Budget Group Inc., received a Wells notice yesterday from the SEC, according to a filing. The company said in October that some former U.S. executives and current employees outside the country had received Wells notices, which are used as notification that investigators may recommend enforcement proceedings.

The company’s outside legal counsel has been working with the SEC on a potential resolution to the investigation and will respond to the Wells notice, it said.

The accounting probe initially involved the company’s former Managed Services Sector division and focused on the Nordic region. Eventually, CSC’s auditors expanded their internal investigation to include operations in Australia, its Americas outsourcing business and a contract with the U.K.’s National Health Service. As part of the effort, CSC wrote down its investment in the U.K. contract last year by almost $1.5 billion.

CSC, based in Falls Church, Virginia, fell 1.1 percent to $52.35 at the close in New York. The shares have gained 31 percent this year.

To contact the reporter on this story: Crayton Harrison in New York at tharrison5@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net


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Companies Mentioned

  • CSC
    (Computer Sciences Corp)
    • $63.72 USD
    • 1.54
    • 2.42%
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