(Company
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Studies) WASHINGTON -- Siebel Systems Inc. said Thursday that the Securities and Exchange Commission staff has recommended enforcement actions against the company and two of its executives.
The SEC has been investigating statements that the two Siebel Systems officers allegedly made before and during an April 30 dinner with analysts, according to the company's third-quarter SEC filing.
The software company's stock rose 8 percent the day after the dinner, which was attended by Siebel's chief Ken Goldman.
Siebel Systems, of San Mateo, Calif., said that it and the two officers filed responses with the SEC, and believes it has "meritorious defenses to these allegations."
The audit committee of Siebel Systems' board launched an internal review of the dinner, according to previous filings.
Siebel shares traded at $13.59, down 19 cents, or 1.4 percent, midday Thursday on the Nasdaq Stock Market.
Siebel Systems was one of the first companies accused of violating Regulation Fair Disclosure.
The rule, which took effect in October 2000, prohibits companies from disclosing material information to a select group.
At a November 2001 technology conference, Siebel Systems' chief executive made several comments in a question-and-answer session that wasn't publicly available. The SEC deemed the comments a violation of Reg FD.
Siebel Systems and the SEC settled the matter in November 2002, paying a $250,000 fine and agreeing to cease and desist from further Reg FD violations.
That action -- as well as simultaneously announced actions against Raytheon Co. and Secure Computing Corp. -- marked the first time the SEC took enforcement actions against companies for Reg FD violations.
Of those three companies, only Siebel Systems paid a fine.
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