Canopy Group, Center7 settle suit for $40 million

0 Comments | Deseret News (Salt Lake City), Aug 13, 2003

LINDON -- The Canopy Group and its subsidiary, Center7 Inc., have settled a breach-of-contract lawsuit with Computer Associates International Inc., based in Islandia, N.Y., for about $40 million.

The settlement resolves all pending claims, which include breach of contract, breach of the implied covenant of good faith and fair dealing, unjust enrichment and unfair competition. The claims stem from conflicts which arose shortly after the companies formed a partnership in 2000.

Center7 confirmed the settlement Tuesday. Ryan Tibbitts, general counsel for Center7, said the company is "pleased" with the settlement but declined further comment, citing a confidentiality clause therein.

CA said in a prepared statement that the settlement cost likely would impact its earnings in the range of 2 cents to 3 cents per share.

"CA said it was pleased to have resolved the matter amicably," the statement said.