CA to Pay $11 Million to Settle Claims of Overcharging Some Government Customers -- Update

(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 [e-mail]

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