NEW YORK, July 2, 2002 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action lawsuit against Peregrine Systems, Inc. ("Peregrine" or the "Company") (Nasdaq:PRGNE), 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 through May 3, 2002, inclusive (the "Class Period").
The Complaint alleges that during the Class Period, defendants improperly accounted 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 Peregrine'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 Monday 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca