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May 23, 2007
2 Min Read
U.S. District Court Judge I. Leo Glasser has dismissed all fraud and obstruction of justice charges against CA for a $2.2 billion accounting scandal.
CA (formerly Computer Associates) announced this week that it satisfied the terms of its 2004 deferred prosecution agreement (DPA) and the agreement has expired. The U.S. Attorney's Office for the Eastern District of New York agreed with court-appointed independent examiner, Lee S. Richards III that CA had complied with the terms of an agreement reached over criminal conduct of former CA executives. The executives, who have been dismissed and charged individually, failed to record revenues from software license agreements when the revenues were earned and obstructed a government investigation. In the widely-publicized accounting scandal, the company recorded 35-day months in order to claim revenues during quarters in which they were not earned. "The expiration of the DPA is the result of the willingness of the government to allow CA to operate under a DPA and the strong commitment by all the company's employees to take the steps necessary to meet its requirements," Lewis Ranieri, chairman of CA's Board of Directors, said in a prepared statement. He said the examiner helped CA strengthen its internal controls and compliance and described the process as "very healthy" for CA. CA President and CEO John Swainson said in a prepared statement that the company "will continue to demand a high level of transparency, ethical behavior, and integrity from our entire organization." "In meeting the terms of the DPA, CA has made great strides in putting in place the business systems, processes and procedures that will ensure its ability to grow and generate value for shareholders, customers and employees," he said. "We are moving forward with a renewed sense of vigor, enthusiasm and dedication to becoming one of the world's most successful software companies. We can now put this chapter behind CA and devote our time, energy and passion to our customers and our business."
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