Salesforce.com, based in San Francisco, California, is a provider of on-demand customer relationship management (CRM) solutions and delivers integrated and scalable enterprise applications for companies of all sizes. Among its clients are AOL Time Warner, Autodesk, Avis, Cigna, Daiwa Securities, Dow Jones Newswires, First Union National Bank, Fujitsu, Nokia, Siemens PT&D, Textron Fastening Systems and USA Today.
The complaint alleges that Salesforce.com and certain of its officers violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by making false and misleading statements to the investing public regarding its business and prospects, causing the stock price to trade at artificially inflated levels during the Class Period. At the same time, defendants sold off more than $117 million worth of their personal shares.