Siebel faces second SEC penalty
The Securities and Exchange Commission may take enforcement action against Siebel Systems and two of its officers over an alleged breach of fair disclosure rules.
The company said in a regulatory filing on Thursday that the SEC has made a preliminary decision to recommend enforcement action as a result of an investigation into Siebel.
The SEC began the probe after a CBS MarketWatch article questioned Siebel's compliance with its rules at an April 30 dinner with financial analysts. The rules, known as Regulation Fair Disclosure, prohibit companies from tipping off Wall Street analysts about financial data without making the information public.
The article, published in May, said Siebel's shares rose the day after Siebel Chief Financial Officer Ken Goldman spoke to securities analysts and certain investors at the dinner party. The company told CBS MarketWatch that Goldman said nothing that evening that hadn't already been discussed previously in an earnings conference call.
Siebel, based in San Mateo, Calif., has been entangled in a similar situation before. Last November, it became the first company to pay a fine involving alleged violations of Regulation Fair Disclosure, which the SEC enacted about three years ago. Under terms of its settlement with the SEC, Siebel paid $250,000, admitted no wrongdoing and pledged not to selectively release information.
In Thursday's filing, Siebel said the SEC has not yet initiated enforcement action, nor has it issued any findings. The company said it has filed submissions with the SEC that it believes counter the allegations.