PHILADELPHIA, March 11, 2004 (PRIMEZONE) -- Law Offices Bernard M. Gross, P.C. (http://www.bernardmgross.com) announces that a class action lawsuit, numbered 04cv0983, was commenced in the United States District Court for the Northern District of California against defendants, SIEBEL SYSTEMS, INC. (Nasdaq:SEBL) and Thomas M. Siebel -- Chairman and CEO, Kenneth A. Goldman -- Senior Vice President and CFO and R. David Schmaier -- Executive Vice President, on behalf of all persons who purchased the common stock of Siebel Systems, Inc. ("Siebel" or the "Company") between October 1, 2001 and July 17, 2002 (the "Class Period"), seeking remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). The case has been assigned to the Honorable Charles R. Breyer.
The Complaint alleges that defendants violated the Exchange Act by issuing material misrepresentations between October 1, 2001 and July 17, 2002, artificially inflating the price of Siebel Systems shares. More specifically, the Company misrepresented that its business and future prospects by overstating 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, the last day of the class period, Siebel announced its second quarter June 30, 2002 earnings reporting a precipitous 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 I demand for Siebel Systems' products by slashing revenue forecasts for the remainder of 2002 by an additional 25% -- or $600,000,000 below guidance provided by defendants just six months prior. In unusually heavy volume of 65 million shares traded, Siebel Systems share prices dropped $2.13 on July 18 to close at $9.61.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross of Law Offices Bernard M. Gross at 866-561-3600(toll-free) or via e-mail at susang@bernardmgross.com. If you are a member of this class, you can view a copy of the complaint as filed at http://www.bernardmgross.com. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
If you bought the common stock of SIEBEL between October 1, 2001 and July 17, 2002 and sustained damages, you may, no later than May 10, 2004, file a motion to be appointed lead plaintiff, if you so chose.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca