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About POGO's Federal Contractor Misconduct Database (FCMD)
The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
Ranking: 12
Computer Sciences Corporation
Founded in 1959, Computer Sciences Corporation is a global information technology (IT) services company. With approximately 80,000 employees, CSC provides systems design and integration, IT and business process outsourcing, applications software development, Web and application hosting, and management consulting. Headquartered in El Segundo, Calif., CSC reported revenue of $14.6 billion for the 12 months ending Dec. 30, 2005.
Federal Contract $: $4508.8m
Total Number of Instances: 8
Total Misconduct dollar amount: $ 140.6m
- Annual Report
- Ethics Page
- Hoovers Profile
- Lobbying Information
- Political Activity
- Press Page
- SEC 10K
- Subsidiary List
- Contracting Information
- Website
Instances of Misconduct
1. Giannetto v. Computer Sciences Corporation (Overtime Pay Class Action)
Current and former employees of CSC reached a settlement of an overtime pay class action lawsuit resolving all of the named plaintiffs' and class members' overtime claims against CSC in exchange for the payment by defendants of $24 million. The suit was filed by plaintiffs on behalf of themselves and approximately 30,000 current and former employees of CSC for alleged violations of the Fair Labor Standards Act, 29 U.S.C. § 201 et seq., California's Unfair Competition Law, and the wage and hour laws of 13 states.... more»
2. Hensley vs. Computer Sciences Corporation (Colossus Software Litigation)
The plaintiffs in this class action alleged CSC, other insurance industry vendors and dozens of insurance companies conspired to wrongfully use software products licensed by CSC and the other software vendors to reduce the amount paid to the licensees’ insureds for bodily injury claims. They also alleged wrongful concealment of the manner in which these software products evaluate claims and of information about inherent flaws in the software. In August 2007, it was reported that some insurance company defendants decided to settle, and the value of the settlements could exceed $293 million. The plaintiffs settled with CSC in February 2009. According to CSC's August 2009 10-Q, "As part of the settlement, the Company has agreed to certain injunctive relief, primarily involving the publication of information regarding the use of the Company’s software by its licensees in adjusting bodily injury claims, and to the payment of legal fees to legal counsel representing the classes in the litigation."... more»
3. Fraudulent Reimbursement
“Computer Sciences Corporation (“CSC”)… agreed to settle civil allegations and reimburse the $1,275,000.00 to settle allegations related to fraudulent conduct by a former CSC employee. Computer Sciences Corporation, headquartered in El Segundo, California (suburb of Los Angeles) had a former employee based in its Huntsville office, and developed a scheme between 1994-2003 whereby CSC made payments to fictitious companies and then requested reimbursement for these payments under a contract with the National Space and Aeronautics Administration (“NASA”). The employee kept the amount of these transactions small in order to avoid detection by CSC and government auditors. However, over a period of approximately nine years NASA reimbursed CSC over $1 million for the fraudulent payments. Upon learning of the employee’s fraudulent scheme, CSC quickly disclosed all the relevant facts to the and fully cooperated with the subsequent investigation. The investigation revealed that while CSC had no knowledge of the fraud, CSC and its former employee both benefited from the fraud."... more»
4. False Claims in Connection With Defaulted Student Loans
CSC Accounts Management, Inc, doing business as CSC Credit Services, Inc., paid the United States more than $6.4 million to settle allegations that it made false claims in connection with defaulted student loans under the Federal Family Education Loan Program and the William D. Ford Direct Student Loan Program. The settlement resolves allegations that CSC Credit Services, Inc. submitted claims for payments of commissions and incentive bonuses relating to certain defaulted student loans that were consolidated in violation of applicable laws and regulations. The settlement also resolves allegations that CSC Credit Services, Inc. wrongfully certified that certain loans were eligible for consolidation, and claimed commissions of 18.5% on certain consolidated loans when it was entitled to a commission of only 10%.... more»
5. Defense Commissary Agency Contract Fraudulent Billing
Computer Sciences Corporation agreed to pay $8,730 to settle fraudulent billing allegations involving a U.S. Army contract to provide computer services at the Defense Commissary Agency in Fort Lee, Virginia from 1994 through 1997. The government alleged that CSC employees attended college classes while their time was being fraudulently billed against the contract.... more»
6. Ontario Teachers’ Pension Plan Securities Litigation
A securities lawsuit alleged that CSC made fraudulent statements about its performance under CSC’s $5.4 billion contract with the U.K. National Health Services (NHS) and about its financial results in fiscal year 2010 in connection with the company’s operations in Europe's Nordic region. The lawsuit was filed on behalf of all persons that purchased or acquired CSC common stock from August 5, 2008 through August 9, 2011. In May 2013, it was announced that the parties settled the lawsuit for $97.5 million.... more»
7. Late Delivery of Software
Computer Sciences Corporation was fined approximately £5 million (US$10 million) for late delivery of patient administration software to National Health Service trusts, under the NHS National Program for IT (NPfIT).... more»
8. ‘Alliance Benefits’ False Claims Settlement
Computer Sciences Corporation agreed to pay $1,370,000 to settle allegations filed under the False Claims Act that it solicited and received improper payments and other things of value on technology contracts with government agencies. The relators, Norman J. Rille and Neal A. Roberts, alleged that CSC knowingly solicited and/or received payments of money and other things of value, known as alliance benefits, from companies with whom it had global alliance relationships. These alliance relationships and alliance benefit payments allegedly constituted kickbacks and undisclosed conflicts of interest in violation of contractual provisions and the Federal Acquisition Regulations. See related IBM instance, "'Alliance Benefits' Alleged Kickback Scheme" and Accenture pending instance, “False Claims On Hardware, Software & Technology Services Sales.”... more»
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