Walmart broke terms of software license, CA Technologies lawsuit says
CA Technologies, formerly headquartered in Islandia, filed a federal lawsuit alleging that Walmart breached the terms of its software license. Credit: Danielle Silverman
CA Technologies, whose former Islandia headquarters once housed Long Island's largest software company, has filed a federal lawsuit charging that retail giant Walmart Inc. breached the terms of its software license.
The lawsuit, filed last week in U.S. District Court in Central Islip, alleges that Walmart, the world's largest retailer by 2019 revenue, improperly used CA's software to provide "processing services" to Walmart Brazil, a unit divested by the Bentonville, Arkansas, company in August 2018.
In a letter the previous month, CA agreed to permit Walmart to provide processing services to Walmart Brazil until June 30, 2019, the lawsuit said, but "Walmart continued to provide unauthorized processing for months afterwards."
On Feb. 4, CA terminated the license agreement, which dated back to 1990, and asked Walmart to remove all CA software, but Walmart refused, according to the complaint.
The lawsuit by CA, now a unit of San Jose, California-based semiconductor supplier Broadcom Inc., seeks an injunction requiring Walmart to stop using its programs licensed from CA and providing services with that software to Walmart Brazil. The lawsuit also seeks unspecified damages and legal costs.
Broadcom closed on the acquisition of CA for $18.9 billion in November 2018 and in the following days outlined plans to lay off about 40% of the software maker's almost 5,000 employees.
In 2014 CA had moved its headquarters from Islandia to Manhattan.
A Broadcom spokeswoman said the company does not comment on pending legal matters.
Walmart did not respond to a request for comment.
Broadcom reported that its CA subsidiary produced $3.4 billion in revenue for the fiscal year ended Nov. 3.
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
