SAP Ends Siebel Lawsuits

SAN FRANCISCO (03/17/2000) - SAP America Inc. said today it has ended two lawsuits it brought against Siebel Systems Inc. over the defections of more than 25 SAP employees to the rival business management software vendor.

"The parties have mutually agreed to settle the litigation, and the lawsuits were dismissed with prejudice," SAP spokesman Bill Wohl said. He declined further comment. Siebel representatives could not be reached for comment.

SAP filed lawsuits against Siebel in November of last year in a Pennsylvania court and in U.S. District Court in Philadelphia in December, 1999, alleging Siebel had engaged in "predatory hiring practices."

"Over approximately the last year, Siebel has engaged in a systematic effort to injure SAP's business and impede SAP's ability to compete with Siebel in the CRM (customer relationship management) marketplace," SAP said when the November lawsuit was filed. [See "SAP Suing Siebel over Predatory Hiring Practices," Nov. 8, 1999.]The December lawsuit named former SAP Vice Presidents Andrew Zoldan and Narina Sippy as defendants along with Siebel, saying their knowledge of SAP threatened the company's operations.

Other top executives at SAP also left to join Siebel. Jeremy Coote, the former SAP America president, left in March of last year, becoming Siebel's vice president of North America operations. Paul Wahl, a former SAP America chief executive officer who left to briefly work as CEO of TriStrata Security Inc. , in May, 1999, became Siebel's president and chief operating officer.

SAP America Inc., in Newton Square, Pennsylvania, can be reached at +1-610-661-1000, or at http://www.sap.com/. Siebel Systems Inc., in San Mateo, California, can be reached at +1-650-295-5000, or at http://www.siebel.com/.

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