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3 Major DXC Technology Lawsuits That Made Waves In 2019

Whether it’s a $666 million win, a draw, or it’s still playing out in court, lawsuits against the business process outsourcing giant have claimed to reveal what goes on behind the scenes.

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Stephen Hilton vs. DXC Technology

Court: U.S. District Court of New York, Southern District

Docket #: 19-cv-01157

Filed: February 2019

Status: CLOSED

Stephen Hilton (pictured) was an executive vice president and rising star at Credit Suisse, when then-Computer Sciences Corp. CEO Mike Lawrie took him to dinner in late 2014 and asked if he would consider a role at CSC.

“The dinner was pleasant, though it had one peculiar moment,” Hilton later noted in the lawsuit. “Lawrie ordered a steak, but then Lawrie let his subordinate … divide up the meat for him. She took the plate from her boss and, using her boss's steak knife, split the pre-carved the meat onto a plate for him and for herself, then split the side dish, and then gave the plate back to her boss. This peculiar moment was a vivid early example of an important feature of Lawrie's personality: his inability to draw the line between the personal and the professional.”

[RELATED: Fired DXC EVP Stephen Hilton Fires Back At CEO In $14.3 Million Suit]

Despite his reservations about Lawrie, Hilton took the job, which -- after CSC and HPE Enterprise Services merged – turned into a large role at DXC. Hilton became the Executive Vice President, Head of Global Delivery, which oversaw 120,000 employees, 60,000 contractors, $14 billion in company assets and reported directly to Lawrie. Hilton was even discussed as a possible successor to Lawrie, his suit stated, and he was given generous stock awards for his performance.

However, the lawsuit accuses Lawrie of possessing a “toxic” management style that valued obedience above honest feedback, and, again, of having no boundaries between personal and professional roles.

“Hilton observed that Lawrie's treatment of many of his subordinates grew worse under the stress of the merger and its aftermath,” Hilton wrote. “DXC executives who had come from Hewlett Packard were often taken aback by the conduct of their new CEO. Several such executives approached Hilton separately for advice about how to handle Lawrie.”

But when Hilton’s “candid” assessments of Lawrie got back to the boss, the relationship went south, the lawsuit stated. Soon, Hilton was out of the loop, and his reviews began to suffer, according to his lawsuit. It wasn’t long before Hilton was given a warning, then a final notice. He was fired in July 2018. Hilton claims Lawrie ordered changes to the vesting dates of his stock options “without contractual or other legal authority” in a move that cost Hilton some $20 million.

In its response, DXC denied Hilton’s claims about the dinner, the “toxic” style, and that Lawrie had changed the vesting date’s of Hilton’s stock – “without legal authority.”

After months of back and forth, DXC and Hilton agreed to dismiss the suit in July, with each side opting to pay its own legal fees and court costs, a sign that typically means the parties have settled out of court.

 
 
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