Business Objects faces US legal action

Business information software company Business Objects has received a notice from the US Securities and Exchange Commission (SEC)...

Business information software company Business Objects has received a notice from the US Securities and Exchange Commission (SEC) that the federal regulator intends to recommend a civil action against the company for possible violation of US securities law.

The notice is in relation to an investigation into whether Business Objects violated reporting requirements, according to Anne Guimard, the company's spokeswoman.

"The SEC is looking into the reporting policy of the company, regarding its backlog of unshipped orders," Guimard said. "That is information that Business Objects does not release and no one in the software industry does."

Guimard said Business Objects did not know what prompted the SEC investigation, but that the company would vigorously defend its position.

The company said it has two weeks to issue a written reply explaining why it believes the SEC should not bring an enforcement action.

The SEC investigation does not involve revenue recognition issues and the proposed action would not assert claims under the anti-fraud provisions of the securities laws, the company said.

Laura Rohde writes for IDG News Service 
 
 

 

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