Faruqi & Faruqi, LLP’s national practice focuses on complex civil litigation. The firm practices in the areas of Securities, Merger & Transactional, Shareholder Derivative, Antitrust, Consumer Class Action, and Wage & Hour litigation.
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential misconduct at CA, Inc. (“CA” or the “Company”).
The investigation focuses on the role of the Company’s officers and directors in defrauding the General Services Administration (“GSA”) and other federal agencies in connection with the defective pricing of computer software products and maintenance. Specifically it has been alleged that the Company provided inaccurate commercial discounting information to the GSA during contract negotiations and that, as a result, the GSA’s contract discount was lower than it otherwise would have been. In addition, it is alleged that the Company failed to apply the full negotiated discount in some instances and to pay sufficient rebates pursuant to the contract’s price reduction clause.
As a result of these allegations, the Company now faces a whistleblower suit in which the plaintiff seeks excess of $100 million. Additionally, the GSA, based on these allegations issued a show cause letter to the Company, which may result in CA becoming ineligible from receiving any future government contracts. Government contracts account for 8% of the Company’s revenue and their termination “could materially adversely affect [the Company’s] business, financial condition, operating results and cash flow” according to the Company’s most recent annual report.
If you currently own CA stock and would like to discuss your legal rights, please contact us by calling Stuart Guber toll free at (215) 277-5770 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding CA’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.