Computer Sciences Corporation Fair Fund
www.ComputerSciencesFairFund.com

Welcome to the Computer Sciences Corporation Fair Fund Website

The Commission Staff has approved an extension of the deadline by which the Fund Administrator is required to send a Claim Deficiency Notice. Claim Deficiency Notices will be mailed no later than November 17, 2017. The deadline to cure deficiencies shall be 30 days from the date of the Claim Deficiency Notice.

If you purchased or acquired Computer Sciences Corporation ("CSC") common stock from August 8, 2008 through December 27, 2011, inclusive (the "Relevant Period"), you may be eligible for compensation.

Background

On June 5, 2015, the SEC issued an Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Sections 4C and 21C of the Securities Exchange Act of 1934, and Rule 102(e) of the Commission’s Rules of Practice, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (the “Order”) finding that CSC, Michael Laphen (“Laphen”), Michael Mancuso (“Mancuso”), Wayne Banks (“Banks”), Claus Zilmer, and Paul Wakefield (collectively, the “Respondents”) violated the federal securities laws.1 The Order stated that from 2009 to 2011, CSC engaged in a wide-ranging accounting and disclosure fraud that materially overstated its earnings and concealed from investors significant problems with its largest contract. Former CEO Laphen approved CSC’s use of improper accounting models for the company’s multi-billion dollar contract with the United Kingdom’s National Health Service (“NHS”). Laphen and former CFO Mancuso also failed to make required disclosures and made misleading statements to investors about the NHS contract. And in one quarter, CSC’s former Finance Director for the NHS account prepared a fraudulent accounting model in which he included made-up assumptions to avoid a negative hit to CSC’s earnings. As this was occurring in the United States and the United Kingdom, senior CSC finance personnel in Australia fraudulently overstated the company’s earnings using “cookie jar” reserves and by failing to record expenses as required. Separately, CSC finance personnel in Denmark engaged in a variety of fraudulent accounting manipulations that also overstated the company’s earnings. Throughout this period, CSC’s most senior executives and various finance personnel repeatedly failed to comply with straightforward accounting standards and disclosure rules. Pursuant to the Order, CSC paid a civil money penalty of $190,000,000; Laphen paid a civil money penalty of $750,000; Mancuso paid a civil money penalty of $175,000; and Banks paid disgorgement of $10,990 and prejudgment interest of $2,400. The Order also created the Computer Sciences Fair Fund (the "Fair Fund") pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, for the distribution to harmed investors.

Additionally, in two related district court actions, defendant William Sutcliffe was ordered to pay disgorgement of $6,003.33 and prejudgment interest of $1,060.622 and Edward Parker was ordered to pay disgorgement of $2,800 and prejudgment interest of $7503. These payments were paid to the Commission and transferred into the Fair Fund. In total, $190,948,983.95 was paid into the Fair Fund.

On June 22, 2016, the Commission appointed GCG to serve as the Fund Plan Administrator to assist in developing a Distribution Plan of the Fair Fund related securities class action, In re Computer Sciences Securities Litigation (the "Plan") pursuant to which monies in the Fair Fund will be distributed to investors harmed by the violations alleged in the Order. The Fund Plan Administrator is authorized to oversee the administration of claims and the distribution of the Computer Sciences Fair Fund pursuant to the terms of the Plan, which can be found at the administration website, subject to the approval of the Commission.

The Fair Fund is separate and independent from the settlement funds previously established in the class action, entitled In re Computer Sciences Corporation Securities Litigation, Civil Action No. 1:11-cv-610-TSE-IDD, pending in the United Stated District Court for the Eastern District of Virginia (the "Class Action"). However, the Fair Fund relates to allegations similar to those asserted in the Class Action during the same time period at issue in the Class Action – from August 5, 2008 through December 27, 2011, inclusive. Therefore, if you submitted a proof of claim form to participate in the Class Action and that claim was approved, you do not need to submit another Proof of Claim Form for your Approved Transactions in order to participate in the Fair Fund. If you had purchases of CSC common stock during the Relevant Period (the period August 5, 2008 through December 27, 2011) in addition to your Approved Transactions, you must submit a Proof of Claim Form in order to recover for those purchases from the Fair Fund.

Eligibility

If you previously filed an approved claim in the Class Action and do not wish to amend your claim, DO NOT submit another Proof of Claim. You will automatically be deemed to be an Eligible Claimant with respect to transactions in the Class Action for which your claim was approved.

If you previously filed a claim in the Class Action that was determined to be deficient and you failed to cure such deficiencies, and you wish to participate in the Fair Fund, you must submit documentation to support your claim so that it is received no later than September 11, 2017. You may submit additional documentation in the following ways: by email to Questions@ComputerSciencesFairFund.com, or by mail to Computer Sciences Fair Fund, c/o GCG, Fund Plan Administrator, P.O. Box 10191, Dublin, OH 43017-3191.

If you did not previously file a claim in the Class Action and wish to participate in the Fair Fund, you must submit a Proof of Claim Form and documentation which must be received no later than September 11, 2017. You may download a Proof of Claim Form by clicking here; after you complete the form, you should submit it as instructed above.


1 See Securities Act Rel. No. 9804 (June 5, 2015).
2 Securities and Exchange Commission v. Wilfred Sutcliffe, No. 15-cf-4340 (RJS) (S.D.N.Y. Sept. 9, 2015).
3 Securities and Exchange Commission v. Edward Parker, No. 15-cf-4341 (ER) (S.D.N.Y. Sept. 9, 2015).