Stull, Stull & Brody Announces Class Action against Siebel Systems, Inc
Business Editors/Legal Writers
NEW YORK–(BUSINESS WIRE)–March 24, 2004
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of California, on behalf of purchasers of the securities of Siebel Systems, Inc. (“Siebel Systems” or the “Company”) (NASDAQ:SEBL) between October 1, 2001 and July 17, 2002, inclusive (the “Class Period”) against Siebel Systems, Thomas M. Siebel, Kenneth M. Goldman, and R. David Schmaier.
The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between October 1, 2001 and July 17, 2002, thereby artificially inflating the price of Siebel Systems common stock.
Specifically, the Complaint alleges that the Company overstated customer acceptance of its 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. On July 17, 2002, Siebel announced its second quarter June 30, 2002 earnings reporting a dramatic drop in revenues of more than 15% and a 33% shortfall in earnings compared to consensus analyst forecasts. The Company also confirmed the continuing slide in demand for Siebel Systems’ products by slashing revenue forecasts for the remainder of 2002 by an additional 25%. In unusually heavy volume of 65 million shares traded, Siebel Systems share prices dropped $2.13 on July 18 to close at $9.61.
Plaintiff seeks to recover damages on behalf of class members and is represented by, among others, the law firm of Stull, Stull & Brody. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions.
If you acquired Siebel Systems common stock between October 1, 2001 and July 17, 2002, you may, no later than May 10, 2004, request the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Aaron Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212-490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. Or you may visit our website at www.ssbny.com.
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