Business Objects SA, Paris is seeing the downside of floating in the US – the shareholder class action. The company is exposed because it has had to restate its results for its first quarter to March 31(CI No 2,967), cutting net profit to 10 cents an American depository share from 15 cents and reducing revenue by $1.4m on reversal of a contract in Europe, which was found not to meet Business Objects’ strict revenue recognition policies. The restatement resulted from the actions of an employee who violated company policies and circumvented standard financial control procedures – rumor says that the chief in Germany has been suspended without pay.
