U.S. Levels Price-Fixing Charge on Computer Associates Merger

Computer Associates International Inc. and Platinum Technology International Inc. are accused in a Justice Department lawsuit of illegally fixing prices when they stopped competing before getting approval to combine the companies.

The government maintains that the companies broke the law by agreeing to limit discounts offered to customers before the approval, a practice called gun-jumping. Computer Associates bought Platinum Technology in 1999 for $3.5 billion.

The federal lawsuit seeks $1.27 million in civil penalties and a ban on Computer Associates from engaging in similar conduct in the future.

Computer Associates, based in Islandia, N.Y., took control of Oakbrook Terrace, Ill.-based Platinum before the review period was over, the Justice Department said Friday.

“By assuming control of Platinum before the expiration of the required waiting period while the Justice Department was investigating the legality of the proposed acquisition, Computer Associates failed to obey the law,” said Charles A. James, who heads the department’s antitrust division.

Computer Associates said the allegations were “unfounded.” In a statement, the company said its actions were “consistent with the law and were essential in order to protect the assets of Platinum.”