A special committee of the board of directors at computer software company CA Inc. accused its founder and former Chairman and Chief Executive Charles Wang of fraudulent accounting and urged legal action, in a report on its investigation released on Friday.
Wang was accused by the committee of having “directed and participated” in accounting fraud that eventually led to a $2.2 billion restatement.
“I find it hard to understand how the Special Litigation Committee could believe the information they were given was credible, when their sources are those who perpetrated the crimes at issue and then lied about them to both internal company investigators and the government,” Wang said in a prepared statement on Friday.
The report said Wang had not participated in the investigation.
“In connection with these investigations, I met with outside counsel of the Company and fully cooperated with the U.S. Government at all stages,” Wang said.
The committee, comprised of two non-management directors, also said it reached a deal with former Chairman and CEO Sanjay Kumar, who succeeded Wang. Kumar will pay CA an additional $15.25 million on top of the $52 million he will pay shareholders as part of a criminal restitution proceedings.