HomeMy WebLinkAboutMINUTES - 02042014 - C.17RECOMMENDATION(S):
APPROVE and AUTHORIZE the Chief Information Officer, or his designee, on behalf of the County, to accept and
deposit a check in the amount of $3,472.66, to participate in the settlement of United States of America, et al. v. CA,
Inc., U.S. District Court for the Eastern District of New York Case No. 06-3552-LDW-WDW.
DIRECT the Chief Information Officer, or his designee, to deposit the settlement check with the County Auditor by
February 5, 2014.
FISCAL IMPACT:
The County will receive settlement funds in the amount of $3,472.66.
BACKGROUND:
On November 8, 2013, the United States District Court for the Eastern District of New York approved a “Settlement
Agreement for Claims of California” in United States of America, et al. v. CA, Inc., U.S. District Court for the
Eastern District of New York Case No. 06-3552-LDW-WDW (the “Litigation”), a class action lawsuit. The
Litigation involved claims related to CA, Inc.’s improper recording of beginning and end dates of software
maintenance contracts with various governmental entities that were entered into between 2001 and 2009. According
to the plaintiffs, this resulted in double payment for periods during which a prior contract and new contract
overlapped. The Litigation was filed by the Federal Government and several states, on behalf of themselves and other
states, counties, cities, and other governmental entities (referred to in the settlement agreement as “political
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 02/04/2014 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Ed Woo
925-383-2688
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED: February 4, 2014
David Twa, County Administrator and Clerk of the Board of Supervisors
By: Stephanie L. Mello, Deputy
cc:
C. 17
To:Board of Supervisors
From:Ed Woo, Chief Information Officer
Date:February 4, 2014
Contra
Costa
County
Subject:Approval of settlement of United States of America, et al. v. CA, Inc., U.S. District Court for the Eastern District of
New York Case No. 06-3552-LDW-
BACKGROUND: (CONT'D)
subdivisions”). The settlement required, among other things, CA, Inc., to pay into a settlement fund, to be allocated
among the plaintiff-class members that are political subdivisions involved in the Litigation. The County was
identified as one such political subdivision and plaintiff class member.
Each political subdivision in the plaintiff class has been mailed a check in the amount of its allocation of the
settlement funds. The County’s allocation of those funds is $3,472.66. The settlement amount was calculated based
on the County’s qualifying purchases of CA, Inc. software maintenance services from 2001 to 2009, and a formula
agree to by the State of California and CA, Inc.
To participate in the settlement, the Board of Supervisors must accept the settlement check, and direct staff to deposit
the check by February 12, 2014. Depositing the check constitutes the County’s approval of the settlement, and the
County will be bound by the Settlement Agreement. If the Board of Supervisors does not approve participating in the
settlement of the Litigation, the County will not be entitled to any of the settlement funds, and would need to return
the settlement check to CA, Inc.. Further, to assert its individual claims, which the class and its attorneys have
asserted on behalf of the County and other class members in the Litigation, the County would need to initiate costly
litigation against CA, Inc.
By participating in the settlement the County would be releasing CA, Inc., from any and all claims the County could
raise regarding CA, Inc.’s improper recording of beginning and end dates for contracts entered into between the
County and CA, Inc., from 2001 through 2009. This settlement only involves claims for past conduct of CA, Inc.
Further, the settlement does not release several types of claims related to CA, Inc.’s past conduct, including claims
arising under tax laws, criminal liability, administrative liability, and claims for failure to provide goods or services,
among other claims.
The County currently contracts with CA, Inc., to maintain the County’s computer mainframe, and to provide software
license maintenance. This settlement should not require any changes or amendments to existing contracts between the
County and CA, Inc.
For the foregoing reasons, the Chief Information Officer recommends that the Board of Supervisors approve
participating in the settlement of the Litigation and authorize the Chief Information Officer, or his designee, to
deposit the settlement check.
CONSEQUENCE OF NEGATIVE ACTION:
If the Board of Supervisors does not approve participating in the settlement of the Litigation, the County will not be
entitled to any of the settlement funds.
CHILDREN'S IMPACT STATEMENT:
Not Applicable