Computer Associates Settles Suit For $40 Million - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Infrastructure

Computer Associates Settles Suit For $40 Million

Trial date in suit brought by Canopy Group and Center 7 had been set for this month.

Computer Associates will pay $40 million to settle a breach-of-contract lawsuit filed by Ray Noorda's Canopy Group Inc. and a software company it owns, CA said late on Tuesday. CA said it expects the payment to reduce its earnings in the current quarter by 2 cents to 3 cents per share.

Canopy Group, founded by former Novell CEO Noorda, and Center 7 Inc., owned by Canopy, filed suit against systems-management software maker CA in 2001. At the time, Center 7 had signed a contract with CA to deliver the functionality of CA's Unicenter software to business customers over the Internet. CA also invested $5 million in Center 7.

According to the suit, CA sold Center 7 $12 million worth of its software as part of the deal, which CA sales reps were supposed to resell along with Center 7's service. But CA never delivered on that promise, and left Center 7 "sitting on that $12 million inventory," Center 7 general counsel Ryan Tibbitts said in an April interview. A trial was set for this month.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Slideshows
11 Things IT Professionals Wish They Knew Earlier in Their Careers
Lisa Morgan, Freelance Writer,  4/6/2021
News
Time to Shift Your Job Search Out of Neutral
Jessica Davis, Senior Editor, Enterprise Apps,  3/31/2021
Commentary
Does Identity Hinder Hybrid-Cloud and Multi-Cloud Adoption?
Joao-Pierre S. Ruth, Senior Writer,  4/1/2021
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Video
Current Issue
Successful Strategies for Digital Transformation
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
Slideshows
Flash Poll