Former CEO Pleads Not Guilty to Fraud

Former Computer Associates International Inc. Chief Executive Sanjay Kumar pleaded not guilty to charges of securities fraud and obstruction of justice after a two-year investigation into accounting fraud at the company.

Kumar’s arraignment in U.S. District Court in New York came a day after the company agreed to pay $225 million to shareholders to settle charges it improperly booked $2.2 billion in revenue.

The company’s shares rose $1.57, or 6.2%, to $26.87 on the New York Stock Exchange.

Stephen Richards, the former global head of sales for the company, also pleaded not guilty to fraud and obstruction charges.