Saba To Be Taken Private After Timesheet Fraud

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Leading talent management solutions provider Saba, has agreed to be taken private by Vector Capital for about $300 million. On February 10, 2015, the Securities and Exchange Commission declared that two former CFOs of Saba have agreed to return nearly a half-million dollars in bonuses and stock sale profits they received while their software company was committing the fraud.

In September 2014,  the Securities and Exchange Commission, USA charged Saba and two former executives for an accounting fraud in which time-sheets were falsified to hit quarterly financial targets. Saba Software submitted to pay $1.75 million for settling the SEC’s charges.

Under the “clawback” provision of the Sarbanes-Oxley Act, executives can be compelled to return to the company and its shareholders certain money they earned while their company was misleading investors.

As reported by New York Times, Saba was delisted from the Nasdaq after it was forced to restate earnings following an accounting fraud scandal.

For now, Vector, the private equity firm that had previously provided a loan to Saba, agreed to pay $9 per share for Saba. Including debt, the deal is valued at about approximately $400 million.

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