Wyly Goes After CAs Auditor
Texas billionaire Sam Wyly has filed suit against the auditor that checked Computer Associates' books when Wyly was selling his software company to CA.Texas billionaire Sam Wyly has filed suit against the auditor that checked Computer Associates International Inc.s books when Wyly was selling his software company to CA. The suit, filed in Texas District Court, seeks $80 million from Ernst & Young. Wyly said it was E&Ys erroneous information that led him to take CA stock at an inflated value in exchange for his Sterling Software in 1999. "E&Y knew that CAs financials were not accurate but nonetheless provided assurances ... to secure a share of the $400 million in professional fees generated by the Sterling acquisition," the suit states.
Shortly after the Sterling deal, CA shares plummeted when the company was forced to restate earnings and lower forecasts.