Former CEO Pleads Not Guilty to Fraud
From Reuters
Former Computer Associates International Inc. Chief Executive Sanjay Kumar pleaded not guilty to charges of securities fraud and obstruction of justice after a two-year investigation into accounting fraud at the company.
Kumar’s arraignment in U.S. District Court in New York came a day after the company agreed to pay $225 million to shareholders to settle charges it improperly booked $2.2 billion in revenue.
The company’s shares rose $1.57, or 6.2%, to $26.87 on the New York Stock Exchange.
Stephen Richards, the former global head of sales for the company, also pleaded not guilty to fraud and obstruction charges.
