DXC Technology Merger $47.5M Securities Settlement

Investors who acquired DXC Technology Co. publicly traded common stock in direct exchange for Computer Sciences Corp. securities as part of the April 1, 2017 merger exchange may be eligible to claim a cash payment from a class action settlement.

Hewlett Packard Enterprise Co., DXC Technology Co. and certain individual defendants agreed to pay $47.5 million to settle a class action lawsuit alleging they made false and misleading statements and omissions in the offering materials issued in connection with the April 2017 merger transaction that formed DXC, including alleged failures to disclose the scope and impact of a workforce reduction plan.

Who can file a claim?

The settlement class includes investors who acquired DXC Technology Co. common stock in direct exchange for Computer Sciences Corp. securities in the April 1, 2017, merger exchange and whose acquisitions allegedly caused them financial harm.

Additional details

• Both individuals and entities can be class members.
• The actual beneficial acquirer or a legal representative must submit the claim.
• Claimants must combine multiple accounts for the same legal entity into a single claim.
• Claimants must combine sub accounts that share the same taxpayer identification number into a single claim.
• Joint owners must each sign the claim form.
• Executors, administrators, guardians, conservators and trustees may submit claims on behalf of others but must provide documentation proving their authority.

How much is the DXC payout?

The total settlement fund is $47,500,000. The amount each class member will receive depends on several factors:

• The number of valid claims submitted
• The number of shares acquired in the merger exchange
• The timing of each sale and holding
• The total recognized claims of all claimants

The settlement administrator will distribute payments on a pro rata basis according to a court-approved plan of allocation.

• Recognized claim amounts depend on overall market loss, transaction timing and share status:
• For shares sold before Nov. 7, 2018, the recognized claim is $0.
• For shares sold between Nov. 7, 2018, and Aug. 8, 2019, the recognized claim is the lesser of $4.50 per share or $69.01 minus the sale price per share.
• For shares held as of the close of trading on Aug. 8, 2019, the recognized claim is $6.07 per share.

• The settlement administrator will set the recognized claim to zero if the calculation results in a negative number or the claimant had an overall market gain from DXC common stock transactions during the relevant period.
• If total recognized claims exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
• Claimants whose calculated payment would be less than $10 will not receive a payout.

How to to claim a DXC securities class action settlement payment

Class members may submit a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The deadline to file a claim is April 6, 2026.

Settlement administrator's mailing address: DXC Technology Co. Merger Litigation, Claims Administrator, c/o Verita Global, P.O. Box 301170, Los Angeles, CA 90030-1170

Proof or documentation required to submit a claim

All class members must provide the last four digits of a Social Security number or the full taxpayer identification number. Class members must also provide acquisition and sale information, including:

• Trade dates
• Number of shares acquired or sold
• Total acquisition or sale price

Class members must provide documentation supporting their holdings and transactions in DXC common stock. Acceptable proof includes:

• Broker confirmation slips
• Broker account statements
• Authorized statements from a broker containing transactional and holding information

Payout options

• Physical check
• Electronic payment

$47.5 million settlement fund

The $47,500,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $15,833,333.33
• Attorneys' expenses: Up to $1,200,000
• Service awards to class representatives: Up to $30,000 total
• Payments to eligible class members: The remainder of the fund

Important dates

• Deadline to file a claim: April 6, 2026
• Fairness hearing: June 11, 2026

When is the DXC merger securities class action settlement payout date?

The settlement administrator will issue payments to eligible class members after the court grants final approval of the settlement and resolves any appeals.

Why did this class action settlement happen?

The class action lawsuit claimed HPE, DXC and certain individuals made false or misleading statements and omissions in the offering materials issued in connection with the April 2017 merger transaction that formed DXC, which allegedly caused investors to acquire DXC shares at artificially inflated prices.

The defendants denied all allegations of wrongdoing and liability but agreed to settle to avoid the risks, costs and delays of further litigation.

Sources

1. Class notice
2. Claim form
3. Stipulation of settlement
4. Settlement FAQ