Securities and Exchange Commission v. Siebel Systems, Inc.
United States District Court for the Southern District of New York
384 F. Supp. 2d 694 (2005)
Relevant factsFree
After Siebel's (defendant) CEO publicly disclosed weak first-quarter results and cautiously optimistic (but economy-contingent) projections, CFO Goldman (defendant) privately told institutional investors the business pipeline was 'good' and 'growing,' with some attendees buying stock shortly after; the SEC (plaintiff) sued for privately disclosing material nonpublic information in violation of Regulation FD, and the defendants moved to dismiss.
IssueFree
Whether investor action taken upon hearing information is, by itself, sufficient to establish that the information was material.