Computer Sciences Corporation (CSC) has agreed to pay $97.5m (£64m) to settle a lawsuit accusing the computer supplier of defrauding shareholders by hiding a variety of accounting problems, which included difficulties over a $5.4bn ($3.5bn)contract with the NHS.

The settlement, which is disclosed in CSC's annual report, means the company will not now face trial in a case brought by a group of shareholders led by the Ontario Teachers' Pension Plan Board.

The group alleged that CSC disguised its problems with a project to a software system known as Lorenzo that was intended to help digitise NHS medical records and 'fraudulently concealed that it was incapable of delivering' on its 10-year contract with NHS.

Shareholders had also accused the company of maintaining inadequate controls over, and relying on, inflated revenue data from its Nordic region, leading to multiple charges. A federal judge dismissed claims related to that region in August.

CSC said it continues to cooperate with a formal US Securities and Exchange Commission (SEC) investigation into the Nordic region issues, and also with that regulator's investigation into the NHS contract.