A class action lawsuit has been filed in the United States District Court for the Southern District of California on behalf of purchasers of Peregrine Systems, Inc. (NASDAQ:PRGN) securities between April 4, 2001 and May 3, 2002, inclusive (the "Class Period").
The complaint alleges that Peregrine Systems, its former Chief Executive Officer and Chief Financial Officer violated the federal securities laws by deliberately inflating the price of the Company's stock through a series of false and misleading public statements concerning the Company and its financial results in press releases, reports filed with the Securities and Exchange Commission and statements to securities analysts. Peregrine's former outside auditor, Arthur Andersen LLP, is also named as a defendant.
On May 6, 2002, Peregrine Systems disclosed that its board of directors authorized an internal investigation of accounting inaccuracies involving as much as $100 million in revenue recognized in transactions with the Company's indirect channels in fiscal years 2001 and 2002. The Company further disclosed that these channel transactions and other accounting issues under investigation may impact its financial results for periods in fiscal years 2001 and 2002. At the same time, Peregrine Systems disclosed that its CEO and CFO had both resigned their positions with the Company.
The complaint alleges that as a result of the defendants' conduct, plaintiff and other members of the Class suffered damages.
Plaintiff seeks to recover damages on behalf of all those who purchased Peregrine common stock during the Class Period, excluding defendants and their affiliates.

Update

On October 11, 2002, the Court issued an order appointing lead plaintiffs and lead counsel. A group of ten investors was appointed as lead plaintiffs, representing class members who allege claims arising under Section 11 of the Securities Act of 1933, and appointed the State Universities Retirement System of Illinois as lead plaintiff representing class members who allege claims arising under Section 10(b) of the Securities Exchange Act of 1934. The law firms of Gold Bennet Cera & Sidener LLP and Berman DeValerio Pease Tabacco Burt & Pucillo were appointed as lead counsel for the class. Also on October 11, 2002, the Court issued an order directing lead plaintiffs to file an amended complaint on or before December 9, 2002.
On October 21, 2002, two pension funds whose motions to be appointed as lead plaintiff were denied filed a motion for correction and partial reconsideration of the Court's order appointing lead plaintiffs and lead counsel.
On January 30, 2003, the Court issued an Order appointing the Loran Group as lead plaintiffs for Section 10(b) claimants and appointing Heywood Waga as lead plaintiff for Section 11 claimants. The Court also vacated the prior appointment of the State University Retirement System of Illinois as lead plaintiff for section 10(b) claimants. The Court's Order further directed lead plaintiffs to file an amended complaint by March 17, 2003, unless otherwise ordered by the Court. Defendants' response to the amended complaint is due April 28, 2003, unless otherwise ordered by the Court.