By Heather McLean, 1 October 2001 17:00
NEWS Computer Associates has been sued by the Department of Justice over price fixing allegations during its 1999 merger deal with Platinum Technology. Last Friday the DoJ sued Computer Associates for $1.3m for restricting price discounts offered by Platinum before the deal was approved by regulators. A Computer Associates member is alleged to have reviewed customer contracts at the Platinum HQ while the merger was still under investigation. Computer Associates said the allegations were 'unfounded' and said it would fight the lawsuit. The DoJ said the price fixing had prevented "certain competitive activities during the (merger review) period". Computer Associates refuted the claims while stating the restrictions given to the company for the merger were the same as those given in previous acquisitions. A spokesman said: "These provisions contained reasonable covenants concerning Platinum's operations, which were needed to protect Platinum's business during the waiting period." The DoJ gave a green light to the $3.5bn Platinum merger in May 1999.
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