(Adds comment from CA)
By Tess Stynes
CA Inc. (CA) agreed to pay $11 million to settle claims the
company overcharged customers, including school districts and law
enforcement agencies for computer-software maintenance and
servicing plans between 2001 and 2009, according to the New York
state attorney general's office.
The settlement includes New York and seven other states, the
District of Columbia and the federal government.
CA, formerly known as Computer Associates, said in a statement,
"Years ago, we corrected systems shortcomings that were discovered
in the course of this seven-year-old case."
"We are pleased to have rectified this matter and to get back to
supporting our customers. These agencies are and remain valued
customers," the company added.
CA was accused of overcharging government customers when they
renewed annual maintenance protection plans, allegedly beginning to
charge for the renewal plans immediately, though the prior year's
service plan hadn't yet expired, resulting in double billing. Each
state will recoup money based on the number of renewal plan
purchases made that were covered in the settlement, which stemmed
from a so-called whistleblower lawsuit filed in 2006 by former CA
employee Ann-Marie Shaw under the federal False Claims Act.
The New York attorney general's office said the settlement marks
a new approach in which multiple states work together to reach a
collective settlement. The coalition was led by New York and
Illinois, the office said.
Write to Tess Stynes at tess.stynes@wsj.com
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