According to a press release dated November 17, 2008, a class action lawsuit was filed naming Taleo Corporation, ("Taleo") (NASDAQ: TLEO) and officers and directors of Taleo as defendants.
Specifically, 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.
On December 19, 2010, a notice of voluntary dismissal was filed by the plaintiff dismissing the defendants from this action.