Short Take: Rational Software faces insider trading suit

A class-action suit has been filed against of Rational Software and brokerage firm Cowen & Co. on behalf of victims of alleged insider trading in Rational's stock. The complaint charges Rational and Cowen with disseminating material inside information regarding Rational's business on October 8, 1997, causing the company's stock to decline by more than 30 percent. The plaintiff in the case seeks to recover damages on behalf of all purchasers of Rational common stock during the trading day on that date.