Computer Associates 2008 Annual Report Download - page 102

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Future minimum lease payments under non-cancelable operating leases as of March 31, 2008, were as follows:
(IN MILLIONS)
2009 $ 147
2010 121
2011 94
2012 73
2013 64
Thereafter 288
Total 787
Less income from sublease (67)
Net minimum operating lease payments $ 720
Prior to fiscal year 2001, the Company sold individual accounts receivable under the prior business model to a third
party subject to certain recourse provisions. The outstanding principal balance of these receivables subject to recourse
approximated $81 million and $115 million as of March 31, 2008 and 2007, respectively.
Stockholder Class Action and Derivative Lawsuits Filed Prior to 2004 — Background
The Company, its former Chairman and CEO Charles B. Wang, its former Chairman and CEO Sanjay Kumar, its former
Chief Financial Officer Ira Zar, and its Vice Chairman and Founder Russell M. Artzt were defendants in one or more
stockholder class action lawsuits filed in July 1998, February 2002, and March 2002 in the United States District Court
for the Eastern District of New York (the Federal Court), alleging, among other things, that a class consisting of all
persons who purchased the Company’s common stock during the period from January 20, 1998 until July 22, 1998
were harmed by misleading statements, misrepresentations, and omissions regarding the Company’s future financial
performance.
In addition, in May 2003, a class action lawsuit captioned John A. Ambler v. Computer Associates International, Inc., et al.
was filed in the Federal Court. The complaint in this matter, a purported class action on behalf of the CA Savings
Harvest Plan (the CASH Plan) and the participants in, and beneficiaries of, the CASH Plan for a class period running
from March 30, 1998 through May 30, 2003, asserted claims of breach of fiduciary duty under the federal Employee
Retirement Income Security Act (ERISA). The named defendants were the Company, the Company’s Board of Directors,
the CASH Plan, the Administrative Committee of the CASH Plan, and the following current or former employees and/or
former directors of the Company: Messrs. Wang, Kumar, Zar, Artzt, Peter A. Schwartz, and Charles P. McWade; and
various unidentified alleged fiduciaries of the CASH Plan. The complaint alleged that the defendants breached their
fiduciary duties by causing the CASH Plan to invest in Company securities and sought damages in an unspecified
amount.
A derivative lawsuit was filed by Charles Federman against certain current and former directors of the Company, based
on essentially the same allegations as those contained in the February and March 2002 stockholder lawsuits discussed
above. This action was commenced in April 2002 in Delaware Chancery Court, and an amended complaint was filed in
November 2002. The defendants named in the amended complaint were current Company director The Honorable
Alfonse M. D’Amato and former Company directors Ms. Shirley Strum Kenny and Messrs. Wang, Kumar, Artzt, Willem
de Vogel, Richard Grasso, Roel Pieper, and Lewis S. Ranieri. The Company is named as a nominal defendant. The
derivative suit alleged breach of fiduciary duties on the part of all the individual defendants and, as against the former
management director defendants, insider trading on the basis of allegedly misappropriated confidential, material
information. The amended complaint sought an accounting and recovery on behalf of the Company of an unspecified
amount of damages, including recovery of the profits allegedly realized from the sale of Common Stock.
On August 25, 2003, the Company announced the settlement of the above-described class action lawsuits against the
Company and certain of its present and former officers and directors, alleging misleading statements,
misrepresentations, and omissions regarding the Company’s financial performance, as well as breaches of fiduciary duty.
At the same time, the Company also announced the settlement of a derivative lawsuit, in which the Company was
named as a nominal defendant, filed against certain present and former officers and directors of the Company, alleging
breaches of fiduciary duty and, against certain management directors, insider trading, as well as the settlement of an
additional derivative action filed by Charles Federman that had been pending in the Federal Court. As part of the class
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