SAN DIEGO and REDWOOD SHORES, Calif., Jan. 22, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of Saba Software, Inc. (OTC: SABA) breached their fiduciary duties to shareholders. Saba provides cloud based intelligent talent management solutions.
View this press release on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/saba-software-inc
Saba Charged with Accounting Fraud
On September 24, 2014, the U.S. Securities and Exchange Commission charged Saba and two of its former executives with accounting fraud involving the falsification of timesheets to reach quarterly revenue and margin targets, resulting in an approximate $70 million overstatement of pretax earnings from October 4, 2007 to January 6, 2012. Saba has agreed to pay $1.75 million to settle the charges.
A further component of the company's settlement with the SEC requires Saba to file its Annual Report on Form 10-K for fiscal year ended May 31, 2014, to include among other things, financial restatements for fiscal years 2010 and 2011, and the first two quarters of fiscal year 2012, by February 15, 2015. However, on December 15, 2014, Saba disclosed that it would not only fail to meet the February deadline, but that it also did not expect to complete the restatements until June 1, 2015, at the earliest. Under the terms of the settlement, a failure to comply with the deadline will result in possible revocation of Saba's stock registration until the company has completed the restatements and filed a registration statement with the SEC. On this news, shares of Saba plummeted $4.74 per share or 35%, to close at $8.75 per share on December 16, 2014.
Robbins Arroyo's investigation focuses on whether these violations underscore a lack of adequate internal accounting controls at Saba.
Saba Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP