Johnson and Perkinson, a law firm based in Vermont, have filed a class action lawsuit naming Taleo Corporation, a provider of talent management software, and officers and directors of Taleo.
According to MarketWatch, individuals, families, trusts or other entities that invested in Taleo securities between October 4, 2005 and November 10, 2008, inclusive (the “Class Period”), have the opportunity to participate as Lead Plaintiffs in the currently pending class action litigation against the Company. To do so, you must apply to serve in that capacity by January 16, 2009.
The Complaint alleges that defendants misled or failed to inform the investing public regarding the Company’s historical and current accounting practices with respect to the timing for recognition of application and consulting revenues under generally accepted accounting principles in the United States (”GAAP”).
These policies, which reflected an inappropriate application of GAAP designed to accelerate the recognition of revenues, had been part of a scheme to defraud investors since the Company’s initial public offering in October 2005. As a result of this acceleration of revenues, Taleo was able to present to investors a rosier picture of its financial condition than the appropriate revenue figures would have depicted. When the truth was revealed to the market, the price of Taleo common stock dropped $3.06, or 28 percent, to $7.99.
The action, docket numbered C08-5182 SC, was filed in the United States District Court for the Northern District of California.
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