A U.S. District Court judge in Alexandria has dismissed 43 of 57 counts -- including racketeering, bribery and conspiracy charges -- against Computer Sciences Corp. and six individuals.
CSC, a major government contractor with principal offices in El Segundo, Calif., is scheduled for trial March 9 on charges that it fraudulently boosted prices paid for computer services by government agencies. Fourteen counts of the indictment were left standing, including allegations of false claims against the federal government.
Judge Richard L. Williams threw out the other charges Wednesday at a preliminary hearing.
"We have denied these charges from the outset and continue to believe all of these criminal charges are "unwarranted," said a spokesman for the computer firm. "The charges remaining involve complex technical issues subject to contract interpretation, and we expect to be fully vindicated in our interpretation and performance of the contract," he said.
The indictment had charged the company with increasing the price of computer pocessing charges under a "fixed price" contract. According to the charges, the company, in effect, changed the measure of usage without disclosing it and charged one government agency for what it said were new and enhanced services but which were not.
Weeks after the indictment, which was handed down Oct. 8, the General Services Administration barred the firm from new government contracts pending the outcome of the trial.
Defendants in the case are SCC, three employes of the corporation and two former employes and the president of Icarus Corp. of Maryland, a CSC subcontractor on the government contract.