Labaton Sucharow represents the Ontario Teachers' Pension Board in In re Computer Sciences Corporation Securities Litigation, which is pending before The Honorable Thomas S. Ellis in the U.S. District Court for the Eastern District of Virginia.

The Complaint alleges that Computer Sciences Corporation ("CSC"), an IT consulting and outsourcing company based in Northern Virginia, fraudulently inflated its stock price through two separate schemes. The revelation of the truth led to a 50% drop in CSC's stock value.

CSC entered into a $5.4 billion dollar contract with the U.K. National Health Service ("NHS").  Throughout the Class Period, which runs from August 5, 2008 through August 9, 2011, CSC assured the market that CSC was "on track" and "making progress" on the NHS Contract. In fact, however, CSC secretly knew as of May 2008, at the latest, that CSC could not deliver on the contract. CSC's inability to perform the contract materialized during the first half of 2011, when CSC missed several key delivery deadlines, and the NHS threatened to terminate CSC due to its repeated breaches of contract.

Separately, CSC has admitted that its Fiscal Year 2010 financial statements were false due to intentional accounting misconduct in CSC's Nordic Region that resulted in an overstatement of CSC revenue by $91 million. This fraud was possible because, from the outset of the Class Period, CSC's internal controls over financial reporting were ineffective, a fact that Defendants knowingly or recklessly disregarded. Nevertheless, Defendants repeatedly certified the accuracy of CSC's financial reports and the effectiveness of its internal controls. After first disclosing $40 million worth of accounting charges and stating that the problem had been "found," "fixed", and "put behind us," the Defendants disclosed an additional $50 million in charges between February and August 2011. The SEC is currently investigating these issues, and CSC's Audit Committee is conducting a forensic investigation. As the true extent of CSC's internal controls and accounting problems were disclosed during 2011, CSC's stock price dropped by 50%.

In October 2011, the parties briefed Plaintiff's motion for class certification and Defendants' motion to dismiss the complaint. On November 6, 2011, the Court heard oral argument. A decision on the motion to dismiss is expected shortly.