Computer Associates may face SEC civil suit
Martin LaMonica Former Staff writer, CNET News
Martin LaMonica is a senior writer covering green tech and cutting-edge technologies. He joined CNET in 2002 to cover enterprise IT and Web development and was previously executive editor of IT publication InfoWorld.
Computer Associates International on Monday said that it has received a notice from the U.S. Securities and Exchange Commission, stating that it may bring civil charges against the company for possible violations in securities law.
The "Wells Notice" the SEC sent to CA pertains to its investigation into how the company booked revenue in the fiscal year ended March 31, 2000. In October 2000, the SEC determined that the company stated revenue prematurely from contracts that had not been fully executed or finalized. In October 2000, CA made a change to how it reports revenue to address the SEC's investigation, the company said.