Computer Sciences To Pay $190 Mln To Settle SEC Probe

(RTTNews) - Computer Sciences Corp. (CSC) said Monday in a regulatory filing that it has agreed to pay a penalty of $190 million and restate its financial statements for three fiscal years as part of a proposed settlement with the Securities and Exchange Commission.

The company has also agreed to implement a review of its compliance policies through an independent compliance consultant.

Computer Sciences said it will record a pre-tax charge of about $200 million for the penalty and related expenses in its third quarter of fiscal year 2015.

The company said it has reached an understanding with the staff of the SEC regarding a settlement. Based on that understanding, the SEC will file an administrative enforcement action alleging violations of the antifraud, reporting, and books-and-records provisions of the U.S. securities laws. The company would neither admit nor deny the allegations, but would agree to cease-and-desist from committing or causing any violations or future violations of those provisions.

The restatement will reflect the company's acknowledgement that there were accounting errors in fiscal years 2009-2012 with respect to certain assumptions under the POC accounting method for the NHS contract.

The anticipated result of the restatement is to reduce the company's net income by about $50 million in fiscal year 2010 and about $3.69 billion in fiscal year 2011 and to increase net income in fiscal year 2012 by about $3.90 billion.

Computer Sciences shares closed Monday's regular trading session at $63.98, down 17 cents, but gained 13 cents in after hours trading.