The US Securities and Exchange Commission (SEC) has launched an official inquiry into a possible violation by the CRM firm of a regulation aimed at preventing companies from selectively issuing market sensitive financial information.
The SEC inquiry relates to an article published by CBS MarketWatch which raised questions about Siebel?s Reg FD compliance and said Siebel's stock gained 8 per cent on twice the average volume for the past 50 days, one day after a dinner party where Siebel's Chief Financial Officer Ken Goldman spoke to certain financial analysts and investors.
Last November Siebel became the first compant to have to pay a fine to settle a case involving the same issue, violations of Regulation Fair Disclosure. Under terms of its November settlement with the SEC, Siebel paid $250,000, admitted no wrongdoing and pledged not to selectively disclose information. The November incident stemmed from Siebel founder and CEO Tom Siebel?s disclosure of material, non-public information to attendees of an invitation-only technology conference.
Siebel says it is cooperating with the SEC and that it has not concluded that any violation has occurred.