Siebel Hit With Second Stockholder Lawsuit

By CIO Update Staff

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The law firm of Geller Rudman announced a class action lawsuit was filed in the U.S. District Court for the Northern District of California on behalf of purchasers of Siebel shares during the period between October 1, 2001 and July 17, 2002.

The complaint charges Siebel and certain of its officers and directors with violations of the Securities Exchange Act of 1934 (Exchange Act). The complaint alleges that during the class period, defendants issued false and misleading statements to the marketplace that artificially inflated the price of Siebel Systems shares.

While brought by a different firm, today's suit is very similar to the suit filed in March.

The complaint goes to state Siebel allegedly misrepresented its business and future prospects by overstating customer acceptance of it new product offerings -- including Siebel 7 CRM -- and failed to disclose that "independent" customer satisfaction surveys, which persuaded investors that a vast majority of the company's customers would purchase products from the company in the future, were in fact carried out by an affiliated company and could not be relied upon.

A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's Website.

This article was compiled and edited by CIO Update staff. Please direct any questions regarding its content to Allen Bernard, Managing Editor.