Contact Center Solutions Industry News

[May 26, 2006]

Target letters sent to 2 in ACS inquiry

(Dallas Morning News, The (KRT) Via Thomson Dialog NewsEdge) May 26--Two former senior managers of an Affiliated Computer Services Inc. unit have been contacted by the Justice Department as part of a previously disclosed antitrust inquiry, the Dallas-based company said Thursday.

The two employees, one of whom remains with the company, received target letters from the Justice Department. A target letter generally means a prosecutor believes the recipient has substantial links to a crime.

ACS, a computer services firm, didn't name the two employees in its filing with the Securities and Exchange Commission.

In 2003, ACS revealed that a federal grand jury had issued a subpoena for documents related to its bids on contracts to process child support payments for state governments. The company believes the agency is looking into its arrangements with a subcontractor, Tier Technologies Inc.

The Justice Department has agreed not to bring criminal charges against Tier in the matter as long as Tier cooperates with the inquiry.

ACS is cooperating in the subpoena process and is conducting its own inquiry, it has said. In an SEC filing earlier this month, it said it was "unable to express an opinion as to the likely outcome of this matter."

ACS shares fell 63 cents Thursday to $49.39.

E-mail charrison@dallasnews.com

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