The suit was filed late Thursday in U.S. District Court for the Eastern District of North Carolina on behalf of investors who purchased shares during the company's stock launch last month. It's the third shareholder suit to target Salesforce with essentially similar allegations.
The complaint, introduced by law firm Schiffrin & Barroway, alleges that Salesforce and two executives--Marc Benioff, company founder and chief executive, and Steve Cakebread, board director--failed to disclose "adverse" pertinent information to investors.
"The company knew or recklessly disregarded the fact that its revenues and earnings per share were steadily declining," the lawsuit alleged. "The defendants concealed the aforementioned facts from the investing public, in order to boost the price of the IPO, which netted the company $126 million."
Salesforce.com declined to comment for this story.
Salesforce, a services company that delivers customer relationship management software over the Web, last month launched one of the mostin recent years. Investors snapped up the stock, which ended its first day of public trading with a whopping