ACS To Restate Earnings For Past 11 YearsACS To Restate Earnings For Past 11 Years

Troubled outsourcer Affiliated Computer Services said it will restate earnings for the past eleven years as a result of the stock option scandal that last month claimed the company's chief executive and chief financial officers.

ACS said Wednesday that previous earnings statements covering the period from June 1995 through the first nine months of 2006 "should no longer be relied upon." The company said that previously unrecorded expenses stemming from improper options backdating total approximately $51 million.

Last month, ACS said CEO Mark King and CFO Warren Edwards had resigned for improperly backdating the price of options grants during a period from 1994 to 2005. During that time, ACS said the executives deliberately chose days on which ACS's stock took a dip as the effective date for the options, making them more valuable when exercised.

ACS said the SEC and the U.S. Attorney's Office in New York are continuing their investigations of the company's stock options practices.