Shares in Business Objects, France?s best-known software group, fell 7.4 per cent on Wednesday after it said the US Securities and Exchange Commission was planning to file a lawsuit against it for an alleged failure to properly disclose its order backlog.

Investors deserted the Paris and Nasdaq-listed company after it admitted receiving a Wells notice from the SEC informing it that the US market watchdog was planning to recommend ?a civil action be initiated?. Business Objects said it believed the ?inquiry addresses the fact that the company does not disclose its backlog of unshipped orders, and that the inquiry does not involve revenue recognition issues?.