Accounting scandal pushes CA into restructuring its legal group

US software giant Computer Associates (CA) is putting the finishing touches to the post-scandal revamp of its legal department, following a year of upheaval.

Thomas Konowalczyk has been promoted to the position of interim European general counsel in Germany and Jeffrey Livingston has joined CA as deputy general counsel from US firm Holland & Knight.

Last week, former general counsel Steven Woghin pleaded guilty to two counts of conspiracy to commit securities fraud and obstruction of justice. Woghin is accused of disrupting a Securities and Exchange Commission (SEC) investigation into CA that began in 2002, after which the company instructed Wachtell Lipton Rosen & Katz to conduct an internal investigation.

The accounting scandal has resulted in the departure of most of the company’s senior management, including former chief executive officer Sanjay Kumar.

Last week the company agreed to pay $225m (£124.7m) compensation to shareholders and agreed to widen its investigation into the accounting fraud. In return, the Department of Justice has deferred its prosecution of the company for 18 months.

Woghin’s replacement Kenneth Handal joined the company in June this year from Altria, the parent company of Kraft Foods, Philip Morris and others. He has now almost finished the resuscitation of the legal group.

Livingston’s appointment can be seen as an important part of efforts to rebuild the company’s battered reputation. Like his boss Handal, he has in-house government experience and a background in compliance and corporate governance.