Hagens Berman Investigating Sales of $120 Million by Insiders at Taleo in Light of Auditors Questioning Revenue Recognition Policies

SEATTLE--(BUSINESS WIRE)--Hagens Berman Sobol Shapiro LLP ("Hagens Berman") (http://www.hbsslawsecurities.com/tleo) today announced it is investigating possible securities fraud claims against Taleo Corporation ("Taleo" or the "Company") (NASDAQ: TLEO) for extensive insider selling while improperly recognizing revenues by the Company’s leadership.

Taleo shares hit a 52-week low on Nov. 11, 2008, after the Company announced it would delay third-quarter earnings reports to review accounting practices. After the announcement, Taleo’s stock fell 28 percent to $7.99 per share from its annual high of $34.20.

Taleo's auditor, Deloitte & Touche LLP, requested on Nov. 6, 2008, that the Company review its revenue recognition policy. It was then Taleo notified the Securities and Exchange Commission (SEC) that it could not meet the Nov. 10, 2008 due date for quarterly earnings reports.

Since going public in 2005, insiders have unloaded Taleo stock with sales in excess of $120,558,011. Within the last six months alone, insiders sold $10,782,049 and purchased no other shares on the open market. Michael Gregoire, CEO, sold $2,500,000 on Aug. 11, 2008. Director Jeffery Schwartz sold $7,829,280 on May 22, 2008, leaving him with no shares.

A class action lawsuit naming Taleo and officers and directors of Taleo was filed in the United States District Court for the Northern District of California on Nov. 17, 2008. Stockholders in that action claim the Company inappropriately accelerated the recognition of revenues since October 2005, the date of the Company’s initial public offering. This allegedly allowed the Company to present an artificially inflated picture of its financial condition to investors. Investors in Taleo securities between Oct. 4, 2005 and Nov. 10, 2008, inclusive (the "Class Period"), must apply to be Lead Plaintiff in the class-action litigation by Jan. 16, 2009. The Court will appoint, as Lead Plaintiff, the investor or investors who have the largest financial interest in the lawsuit.

If you have facts relating to our investigation, or are a significant investor with purchases in excess of $100,000 and wish to consider being a Lead Plaintiff, contact Reed Kathrein at [e-mail] or [phone].

Hagens Berman Sobol Shapiro, a law firm with offices in Seattle, San Francisco, Los Angeles, Boston, Chicago, Phoenix and New York, is active in major litigation pending in federal and state courts throughout the United States, and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Hagens Berman Web site (www.hbsslaw.com) and securities blog (www.meaningfuldisclosure.com) has more information about the firm and its practice.