Computer Associates Plunges 20 Percent
foxnews.com
Wednesday, February 20, 2002
NEW YORK — Computer Associates International Inc. shares plunged nearly 20 percent on Wednesday after reports that the U.S. Attorney's office was investigating the software maker's accounting practices.
Shares of Islandia, New York-based Computer Associates, the world's No. 4 software maker, were off $3.91, or 15.5 percent, to $21.39 in morning trading on the New York Stock Exchange, where it was the second-most active issue and among the biggest percentage losers.
Earlier in the morning, the stock had fallen as low as $20.25 -- a level not seen since Jan. 2001.
On Wednesday, Newsday reported the FBI and the U.S. Attorney's office in Brooklyn, have launched a preliminary investigation of whether the company's accounting practices violated federal criminal fraud laws.
The newspaper said investigators are focusing on whether the company properly reported its software sales from revenue from services -- fees collected for training, upgrades, and maintenance of its software. |
