COURT APPOINTS ATTORNEY LEE S. RICHARDS INDEPENDENT EXAMINER FOR COMPUTER ASSOCIATES INTERNATIONAL, INC.
FOR IMMEDIATE RELEASE
Washington, D.C., March 16, 2005 - The Securities and Exchange Commission today announced that United States District Court Judge I. Leo Glasser has issued an order appointing attorney Lee S. Richards to act as Independent Examiner for Computer Associates International, Inc. Judge Glasser appointed Mr. Richards pursuant to the Final Judgment in the SEC's civil action that Computer Associates consented to on Sept. 21, 2004, and also pursuant to the Deferred Prosecution Agreement (DPA) that Computer Associates entered into with the United States Attorney for the Eastern District of New York (USAO) on Sept. 22, 2004.
Mr. Richards will serve as Independent Examiner for at least eighteen months. In that role, Mr. Richards will, among other things, examine Computer Associates' compliance with the terms and conditions of the Final Judgment and DPA; make recommendations to Computer Associates' Board of Directors for review and implementation, after consultation with the SEC and USAO, regarding best practices in the specified areas; issue quarterly reports to the SEC and USAO, and Computer Associates' Board of Directors; and, at the conclusion of his term, prepare and deliver to the Court, SEC, USAO, and Board of Directors a Final Report describing the extent of Computer Associates' compliance with the Final Judgment, DPA and order appointing Mr. Richards. The "best practices" at Computer Associates that Mr. Richards will examine, as listed in the Final Judgment and DPA, include (1) practices for recognition of software licensing revenue; (2) internal accounting controls; (3) implementation of a new "enterprise resource planning" information technology system; (4) the adequacy of the Internal Audit Department; (5) ethics and compliance policies; and (6) management policies and procedures.
Mr. Richards is a partner in the New York law firm of Richards Spears Kibbe & Orbe LLP.
For further information contact:
Mark K. Schonfeld (646) 428-1650
Regional Director, Northeast Regional Office
Andrew M. Calamari (646) 428-1659
Associate Regional Director, Northeast Regional Office
Alexander M. Vasilescu (646) 428-1928
Senior Trial Counsel, Northeast Regional Office