CA's $40 Million Payout



Computer Associates will pay $40 million to settle a breach-of-contract lawsuit filed by former Novell CEO Ray Noorda's Canopy Group Inc. and Center 7 Inc., a software company it owns. Canopy Group and Center 7 filed suit against CA in 2001. Center 7 had signed a contract with CA to deliver the functionality of CA's Unicenter software to customers over the Internet. According to the suit, CA sold Center 7 $12 million worth of Unicenter software in the deal, but CA's sales reps never delivered on CA's promise to resell the software along with Center 7's service.

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