NEW YORK, June 10, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Southern District of California, civil action number 02 CV 1120K (AJB), on behalf of all persons or entities who purchased Peregrine Systems, Inc. ("Peregrine" or the "Company") common stock (Nasdaq:PRGN) between July 21, 1999 and May 22, 2002, both dates inclusive (the "Class Period"). Peregrine, Stephen P. Gardner, Matthew C. Gless, and Arthur Andersen LLP are named as defendants in the action.
The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 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.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel LLP at www.rabinlaw.com.
If you purchased Peregrine Systems, Inc. securities between July 21, 1999 and May 22, 2002 AND all those who acquired Peregrine Systems shares through its acquisition of Harbinger Corp (formerly Nasdaq:HRBC), Extricity Inc. (formerly Nasdaq:EXTY), and Remedy Corp (formerly Nasdaq:RMDY), you may be a member of the class and have until July 8, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. If you wish to discuss this action further or have any questions concerning this announcement, or your rights or interests, please contact plaintiff's counsel, Eric Belfi or Sharon Lee, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca