Options to Cost CSC $59 Million

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Computer Sciences Corp. said Wednesday that an internal probe of the company’s stock options granting practices has uncovered problems that will cost the company about $59 million in restated earnings.


The El Segundo-based information technology services provider said that to account for expenses from options-grant backdating, it will have to restate about 10 years worth of financial statements.


However, the company said its recently completed internal investigation determined that employees didn’t intentionally date grants to time when the company’s stock traded lower, thus inflating their value. The company hasn’t filed financial statements for the past three quarters because of the probe.


Computer Science shares were up 40 cents to $52.90 in afternoon trading on the New York Stock Exchange.

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