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2 at Computer Sciences Sued Over Option Grants

Markets | WALL ST. ROUNDUP

June 06, 2006|From Bloomberg News

Computer Sciences Corp. shareholders have sued company executives, saying Chief Executive Van Honeycutt and others received improperly backdated stock option grants.

The backdating violated the terms of the option plan and improperly increased the value of the awards, the shareholders said in a lawsuit filed Thursday in Los Angeles County Superior Court. The suit asks that executives return any money made from backdated options. Stock options are rights to buy stock at a set price.

"At the behest of the officer defendants, the compensation committee defendants improperly backdated the stock option grants to make it appear as though the grants were made on dates when the market price of Computer Sciences Corp. stock was lower than the market price on the actual grant dates," the suit said.

Mike Dickerson, a spokesman for El Segundo-based Computer Sciences, said the computer service company had not been served with the suit and could not comment.

Computer Sciences shares fell 70 cents to $56.10.

The company said in April that it received "expressions of interest" from a potential buyer and hired Goldman Sachs Group Inc. as an advisor.

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