Language Selection

English French German Italian Portuguese Spanish

2000 Caldera-Microsoft Settlement Surfaces in Novell v. Microsoft Antitrust Lawsuit

Filed under
Legal

The Novell/Canopy/Caldera/DR DOS story continues, and Novell and Microsoft are in the middle of it all, battling in discovery in the Novell v. Microsoft antitrust litigation -- that is the litigation over WordPerfect currently before the US District Court in Maryland in pretrial discovery.

Microsoft politely asked for [PDF] all documents "relating to Novell's sale of PC operating systems claims to Caldera and Novell's involvement with Caldera's case against Microsoft", as well as "all documents produced by parties and third parties" in the Novell v. Canopy case. Why? Because it is its theory, which it wants to do discovery to demonstrate, that Novell sold all its antitrust claims to Caldera, and that would kill off the two remaining claims Novell has brought against Microsoft in the antitrust case. Microsoft, not satisfied with what Novell produced or its reasons for refusing to produce some documents, brought a Motion to Compel Discovery [PDF] [Memorandum in Support (PDF)], and it has just been granted [PDF]. In Novell's opposition [PDF] to the motion, it attached some exhibits, one of which is the settlement agreement [PDF] in the Caldera v. Microsoft litigation, as Exhibit K.

Finally, we get to read it.

More Here




Very important smoking gun

For context, you might want to see this.

The short story is that Microsoft has repeated its pattern of destorying evidence so as to avoid future action against its corruptions. Those wanting to see similar examples would appreciate:

link

We know that the SEC became interested after Microsoft settled with a whistleblower former employee, who funnily enough then shut up, and because Microsoft admitted that the SEC has started a “non-public investigation into the company’s accounting reserve practices”. This investigation was spurred following disclosures related to a wrongful dismissal claim brought by Microsoft’s former (internal) general auditor, Charles Pancerzewski, who had been offered a “resign or be fired” choice in 1996 after he claimed accounting practice irregularities. Pancerzewski complained that Microsoft used its reserves to pad its earnings in lean quarters, with the result that Microsoft misreported its earnings.

Microsoft’s “unearned revenue from prior periods” in its cash flow statement shows that Microsoft recognised $5.6 billion in fiscal 2000, up from $4.526 billion in fiscal 1999 and $1.798 billion in fiscal 1998. Pancerzewski filed suit under the Whistleblowers Protection Act, resulting in Microsoft’s records being subpoenaed. The judge decided there was enough evidence to go to trial on the whistleblower charges, but Microsoft quietly settled out of court, with Pancerzewski apparently accepting $4 million in compensation, a gagging agreement, and the sealing of the court record.

It is interesting to recall that pundit Robert Cringely noted a conversation he had with former Microsoft CFO Frank Gaudette. When asked what signs there would be as to when Microsoft stock should be sold, Gaudette said: “Watch for any changes in our accounting. If I need, I can start depreciating the software and maintain earnings growth for years on flat revenue.” Although Microsoft hasn’t yet reached the point of doing this, it is highly significant that a major change in the accounting system was introduced recently, especially as lacklustre results are expected for the current Q1.

---

Microsoft securities fraud might have it toppled like Enron one day. But the relationships with the Bush administration has stood in the way of proper scrutiny.

Remember: Microsoft lost $18 billion in 1998. It just plays financial games with assets it may not really have.

More details have been made available on this subject thanks to Bill Parish:

http://www.billparish.com/msftfraudfacts.html

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

More in Tux Machines

Leftovers: Software

  • Five tools to enable Linux automation, monitoring and backup
    When it comes to Linux data center tools, there is no shortage of options. For automation, backup and monitoring, consider these five Linux tools first.
  • GnuCash 2.6.13 Open-Source Accounting Software Released, Over 20 Issues Resolved
    Today, June 28, 2016, the GnuCash development team has released yet another maintenance release of their open-source and cross-platform GnuCash 2.6 accounting software. GnuCash 2.6.13 is here as the most advanced version of the money manager applications that runs on GNU/Linux, Mac OS, and Microsoft Windows operating systems, and it arrives three months from the release of the GnuCash 2.6.12 maintenance update to fix a total of 22 issues reported or not by users during all this time.
  • Libav Gets An OpenH264 Decoder Wrapper
    For those still using Libav over FFmpeg, this multimedia library has added a wrapper for OpenH264 decoder support.
  • Ubuntu Ambiance Theme Ported to GTK 3.20, Nautilus 3.20 Is Ready for Yakkety Yak
    Debian and Ubuntu developer Iain Lane writes today on one of the mailing lists of the Ubuntu Linux operating system about the fact that he's been working for the past few weeks on bringing GTK+ 3.20 support to Ubuntu. According to Iain Lane, the latest GTK+ 3.20 GUI toolkit, which is usually shipped by default with the GNOME 3.20 desktop environment, is ready for upload on the Ubuntu software repositories, for Ubuntu Desktop, only that he doesn't mention for which Ubuntu version, so we can only guess that he's talking about Ubuntu 16.10.

OSS in the Back End

Debian Pushes Major Kernel Update to Debian Jessie, Fixes Over 20 Security Flaws

Today, June 28, 2016, Debian Project, through Salvatore Bonaccorso, published details about a major Linux kernel security update for the Debian GNU/Linux 8 "Jessie" operating system. Read more

Canonical Is Considering Dropping Support for 32-bit PCs After Ubuntu 18.10

Today, June 28, 2016, Canonical's Dimitri John Ledkov laid down an example draft plan on how Canonical will deal with 32-bit (i386) support for upcoming Ubuntu Linux releases. Read more