PHILADELPHIA, May 7, 2002 (PRIMEZONE) -- Spector, Roseman & Kodroff, P.C. has filed a class action suit on behalf of purchasers of the securities of Peregrine Systems, Inc.("Peregrine" or the "Company") (Nasdaq:PRGN) between July 24, 2001 and May 3, 2002, inclusive. The action is pending in the United States District Court, Southern District of California against defendants Peregrine Systems, Inc., and certain of its officers and directors.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between July 24, 2001 and May 3, 2002, thereby artificially inflating the price of Peregrine securities. Specifically, as alleged in the complaint, Plaintiff and the Class were injured because the risks that materialized were risks of which they were unaware as a result of defendants' misrepresentations, omissions and other fraudulent conduct alleged. On May 1, 2002 the stock closed at $3.45 per share down almost 50% from the previous day's closing price of $6.85 per share, on extremely heavy volume of 28,429,000 shares traded. The following day, after it was reported that fraud might also be involved, Peregrine's per share price dropped even further to close at $2.60 per share on even heavier trading volume of over 30 million shares. The decline in the price of Peregrine's securities was caused by the public dissemination on or about May 6, 2002 of the true facts, which were previously concealed or hidden. Wherein Peregrine shocked the market by announcing that its board of directors had authorized an internal investigation into accounting inaccuracies, totaling as much as $100 million, which KPMG had brought to the attention of the audit committee. Simultaneously, the board of directors announced that Peregrine's Chairman of the Board and Chief Executive Officer and its Chief Financial Officer had both resigned all of their positions with the Company. As a result of defendants' misconduct, alleged, plaintiff and the class have suffered substantial damages.
If you bought the securities of Peregrine between July 24, 2001 and May 3, 2002 you may, no later than July 8, 2002, request that the Court appoint you as lead plaintiff. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in Peregrine Systems Inc. securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit http://www.srk-law.com/recentsecuritiesfilings.asp. To discuss this action or if you have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud . As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca