Baan Co NV is now fighting three class action suits filed on behalf of holders of its American Depository Receipts after the collapse of its share price following a profit warning last week (CI No 3,515). The Dutch ERP vendor instantly rejected the complaints. Baan will fight this and will win, said a spokesperson. We want our shareholders to know management is redoubling its efforts to rebuild shareholder value and confidence, added senior vice president Robert Goudie. A string of accusations allege that Baan issued false and misleading financial statements, and employed fraudulent accounting methods to improperly recognize revenue. The allegations also say that Baan was able to make several acquisitions using inflated ADRs as currency, and accuses certain company insiders of selling stock at artificially high prices. Baan has certainly had a troubled year and it fired its auditors in May after controversy over revenue recognition policies. On Nasdaq yesterday, Baan shares retreated another 6.6% to $11.4375. They were as high as $55.50 earlier this year.
