More grim tales emerge for Computer Services Corp

tumblr_mc8zb8BqH31rttlrno1_400Last week we reported how Computer Services Corp is about to break itself up, but now it turns out that this is just one slice of woe pie for the outfit.

The firm has just sued the former chief executive of a company it bought in 2013 for breaching its code of business conduct.

The lawsuit against Eric Pulier was about alleged  unauthorised payments he made to two executives of Commonwealth Bank of Australia, a CSC client, shortly after receiving tens of millions of dollars related to CSC’s acquisition of ServiceMesh.

“CSC’s lawsuit seeks to recover the damages caused by Pulier’s fraud, breach of contract, and breach of the duty of loyalty he owed to CSC,” the company said.

CSC said it gave earn-out payment of about $98 million to equity holders of ServiceMesh, which it bought for $260 million in May 2013. Of that, Pulier got about $25 million.

The former ServiceMesh CEO also received $26 million worth of restricted stock units and became the vice president of CSC’s cloud business unit.

In its complaint, CSC said Pulier later paid more than $2 million to the CBA executives, both of whom had extensive involvement in ServiceMesh projects and contracts.

Pulier did not advise or seek approval for payments, which breached the equity purchase agreement and violated numerous CSC rules and policies that Pulier agreed with.

CSC started its internal investigation after Australian authorities arrested the two CBA employees for commercial bribery in March.

Pulier resigned from CSC on April 22.