Siebel Under SEC Disclosure Scrutiny Again

By Dennis Callaghan  |  Posted 2003-11-13 Print this article Print

Siebel under scrutiny for a possible violation of Regulation FD (Fair Disclosure) rules once again.

Siebel Systems Inc. is under SEC scrutiny for a possible violation of Regulation FD (Fair Disclosure) rules once again. The latest SEC allegations focus on an April 30 dinner with financial analysts attended by two Siebel executives, one of whom was CFO Ken Goldman. The Siebel executives allegedly made statements to these analysts about the companys financial performance at the dinner that were not shared with the public. On May 1, Siebels stock climbed 8 percent. On May 6, the SECs Enforcement Division staff contacted Siebel indicating that statements made at the dinner constituted a violation of Regulation FD and that the SEC had made a preliminary decision to take enforcement action against Siebel and those executives who attended the dinner.
No enforcement action has been initiated yet, and no findings have been issued. Siebel, in an SEC filing Thursday, said it has filed submissions with the SEC in response to the potential actions and that it believes that those submissions contain "numerous meritorious defenses to the allegations."
Last November, Siebel became the first company to be fined for violating Regulation FD, paying $250,000 without admitting any wrongdoing for comments Tom Siebel made to a private investors conference the previous November. Regulation FD, which took effect in October 2000, was instituted to prevent public companies from disclosing material financial information to a select group before that information is made available to the public. Siebel would be the first company to have violated Regulation FD twice if further SEC action is taken.

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