Computer Associates Settles With U.S. Over an Acquisition

The software company will pay a fine to settle a civil suit over the 1999 purchase of Platinum Technology International.

Author:: Ronna Abramson
Publish date:: Apr 23, 2002 4:36 PM EDT

Computer Associates

(CA) - Get Report

said Tuesday it has settled a civil suit with the Department of Justice over the company's acquisition of

Platinum Technology International

CA has agreed to pay the DOJ $638,000 under the settlement, which includes no admission of wrongdoing. The settlement will become final after a 60-day period for public comment.

The suit alleged that Computer Associates was actively involved in decision-making for Platinum before the merger had passed antitrust review. CA closed the approximately $3.5 billion purchase of Platinum in June 1999. Before that, the DOJ required Computer Associates to sell six of Platinum's mainframe systems management software products and some related assets as a condition of the deal's approval.

Earlier this month, Computer Associates said the Justice Department closed its inquiry into another acquisition, of

Sterling Software

, without taking action.

Computer Associates also has recently been under

scrutiny by the

Securities and Exchange Commission

and the U.S. attorney's office over its accounting practices.

Shares of CA closed off 32 cents, or 1.6%, to $19.03.