CA moves to settle shareholder litigation

CA moves to settle shareholder litigation

Computer Associates is to settle all outstanding litigation related to allegations about past accounting problems.

Link: E&Y subpoenaed in Computer Associates probe

The company will issue up to 5.7 million shares of CA common stock to its shareholders, and the company said in return it is confident it can resolve current shareholder and ERISA class-action suites.

The company will take a charge in its current financial quarter of $144m.

CA chairman and chief executive officer Sanjay Kumar said the decision was made despite CA being confident that it could win a legal battle.

He said in a statement: ‘While confident in our position, the board of directors concluded that a settlement – especially one that puts more equity in the hands of shareholders – was the best course of action.

‘It became clear that it was a far better option than continuing with the expense and distraction of a protracted legal battle that began five years ago,’ he added.

The settlement has been approved by the board’s independent directors and will be submitted for approval to the US District Court for the Eastern District of New York.

CA said the settlement of these cases is separate from the continuing and investigations by the Securities and Exchange Commission and the US Attorney’s Office for the Eastern District of New York.

It is cooperating with those investigations and ‘continues to respond to requests from those agencies, and the board continues to exercise oversight and review of these issues,’ but said it is unable to predict the outcome of the government investigations.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource