NEW YORK, June 3, 2002 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action lawsuit in the United States District Court for the Southern District of California against Peregrine Systems, Inc. ("Peregrine" or the "Company") (Nasdaq:PRGN), the Company's former auditor Arthur Andersen LLP, and two of the Company's former officers on behalf of investors who purchased the securities of Peregrine during the period from July 21, 1999 and May 3, 2002, inclusive (the "Class Period"). The lawsuit charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act by, among other things, improperly accounting for over $100 million by booking revenue from indirect sales channels, in violation of Generally Accepted Accounting Principles ("GAAP"), thereby leading to a material overstatement of the Company's revenues.
On May 6, 2002, Peregrine announced that it would be forced to take a $100 million restatement, "for periods in fiscal 2002 and prior" to account for "certain transactions involving revenue recognition irregularities," and that, as a result, the Company's CEO and CFO would both resign. That day, the stock, which had traded as high as $38.25 during the class period, plunged to close at $0.89 a share. This announcement followed Peregrine's replacement of its long time auditors, Arthur Andersen LLP with KPMG.
Thereafter, on May 23, 2002, Peregrine announced that it would restate financials back to fiscal 2000. It also announced that the Securities & Exchange Commission ("SEC") was conducting an investigation into Peregrine's accounting practices.
If you purchased the securities of Peregrine during the Class Period, you have until July 8, 2002 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz firm, which has offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca