Computer Associates Probe Focuses on 1998, 1999 Revenue

Updated from 8:05 a.m. EDT

Shares of Computer Associates(CA Quote) dropped modestly Monday amid a report that federal investigators are examining a May 2000 accounting reclassification that eliminated more than $1.7 billion in prior years' revenue.

Shares of Computer Associates were down 46 cents, or 2.6%, to $17.10 in recent trading.

The investigation by the Securities and Exchange Commission and Justice Department is focusing on whether Computer Associates wrongly booked more than $500 million in revenue in 1998 and 1999, a time when three senior executives were enriched via payouts that were triggered by stock price milestones, The Wall Street Journal reported Monday. ...