A class action lawsuit was been filed in the United States District Court for the Northern District of California on behalf of purchasers of Ariba, Inc. (Nasdaq:ARBAE) securities between January 11, 2000 and January 15, 2003, inclusive (the "Class Period"). Ariba is in the business of providing Internet-based business to business software and services.
The Complaint charged that the Company and certain of its officers and directors violated federal securities laws by issuing false and misleading financial results in violation of Generally Accepted Accounting Principles ("GAAP"), while at the same time reaping over $692 million in insider sales. Eventually, the Company was forced to restate the Company's financial statements for the fiscal years 2000 and 2001, and for the first three quarters of 2002. The Complaint alleges that during the Class Period plaintiff and the rest of the Class purchased Ariba securities at prices artificially inflated as a result of defendants' false and misleading reports.

Update

On March 16, 2005, the Court granted defendants' motion to dismiss the second amended complaint and dismissed the case with prejudice. For more details on this and other cases, go to the Stanford Securities Class Action Clearinghouse at http://securities.stanford.edu.