Peregrine System just encounters major accounting problems. Chairman/CEO and CFO quit and the stock falls 65% percent today (may 6 2002), and 87% since 4 days ago.
KPMG is currently investigating on accounting problems after replacing Arthur Andersen.
Source: CNN
Slotnick, Shapiro Files a Class Action Against Peregrine Sys...
May 8, 2002: 12:15 a.m. EST
NEW YORK (PRNewswire) - The law firm of SLOTNICK, SHAPIRO & CROCKER, LLP has commenced a class action lawsuit alleging securities fraud in the United States District Court for the Southern District of California against Peregrine Systems, Inc. ("Peregrine" or the "Company") and certain of its officers and directors.
The case was filed on behalf of all persons who purchased Peregrine securities during the period July 19, 2001 through May 6, 2002, inclusive (the "Class Period").
The Complaint alleges that Defendants violated Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act"), and Rule 10b-5 promulgated thereunder, and Section 20(a) of the Exchange Act, by making materially false and misleading statements regarding Peregrine and its audit activities. On Monday, May 6, 2002, Peregrine announced that its board of directors had authorized an internal investigation into accounting inaccuracies totaling as much as $100 million. The Company disclosed that these transactions and other accounting matters to be investigated may impact financial results for periods in fiscal 2002 and prior. 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.
If you are an Institutional Investor or an individual who has incurred substantial losses in your investment in Peregrine during the proposed Class Period, you may seek to be a Lead Plaintiff in the litigation and must file papers in this regard by July 5, 2002.
A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed Lead Plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "Lead Plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a Lead Plaintiff. You may retain Slotnick, Shapiro & Crocker, LLP or other counsel of your choice, to serve as your counsel in this action.
SLOTNICK, SHAPIRO & CROCKER, LLP is recognized as one of the nation's preeminent litigation firms, having represented both plaintiffs and defendants in trials throughout the United States. Stephen D. Oestreich is Chairman of the Firm's Class Action Department and has been responsible, in more than 25 years of practice, for the recovery of hundreds of millions of dollars on behalf of shareholder class members.
If you are a member of the proposed class as described above, and would like to serve as a Lead Plaintiff of the class, and wish to discuss the claim or have any other questions concerning the matters set forth above, please contact
Stephen D. Oestreich, Esq.
SLOTNICK, SHAPIRO & CROCKER, LLP
100 Park Avenue, 35th Floor
New York, NY 10017
Tel.: (212) 687-5000 or Toll Free: 1-888-367-5291
Fax: (212) 687-3080
E-Mail: frivera@sscny.com
[Edited by admin on 08-05-2002 at 22:03 GMT]
Source: CNN
Cauley Geller Bowman & Coates, LLP Announces Class A...
May 8, 2002: 1:03 p.m. EST
LITTLE ROCK, Ark. (PRNewswire) - The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that a class action has been filed in the United States District Court for the Southern District of California on behalf of purchasers of Peregrine Systems Inc. ("Peregrine" or the "Company") common stock during the period between July 19, 2000 and April 30, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.classlawyer.com/pr/peregrine_systems.pdf .
The complaint charges Peregrine and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition, thereby artificially inflating the price of Peregrine securities. Peregrine's former outside auditor, Arthur Andersen LLP, is also named as a defendant. Specifically, as alleged in the complaint, plaintiff and the class were injured as a result of defendants' misrepresentations, omissions and other fraudulent conduct alleged. Peregrine stock began its decline on May 1, 2002 following the Company's April 30, 2002 announcement that the release of its fiscal fourth quarter and year end financial results would be delayed pending the completion of an audit by new outside auditor KPMG. Upon this announcement Peregrine stock fell nearly 50% to close at $3.45. On May 6, 2002 the true facts regarding Peregrine's financial condition, which were previously concealed or hidden, were revealed to the public. On this date, 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 its Chief Financial Officer had both resigned all of their positions with the Company. Following this announcement Peregrine stock fell an additional 61% to close at $1.01. As a result of defendants' alleged misconduct, plaintiff and the class have suffered substantial damages.
If you bought Peregrine common stock between July 19, 2000 and April 30, 2002, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than July 8, 2002. If you are a member of this class, you can join this class action online at http://www.classlawyer.com/sign_up.html . Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller Bowman & Coates, LLP or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida and Arkansas, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at http://www.classlawyer.com/ .
CAULEY GELLER BOWMAN & COATES, LLP
Investor Relations Department:
Jackie Addison, Sue Null or Shelly Nicholson
P.O. Box 25438
Little Rock, AR 72221-5438
Toll Free: 1-888-551-9944
E-mail: info@classlawyer.com
Source: CNN
Scott + Scott, LLC Files Lawsuit Against Arthur Andersen, LL...
May 8, 2002: 1:16 p.m. EST
COLCHESTER, Conn. (PRNewswire) - SCOTT + SCOTT, LLC (http://www.scott-scott.com; e-mail: nrothstein@scott-scott.com), a Connecticut-based law firm with offices outside of Philadelphia, filed a class action lawsuit on May 7, 2002, on behalf of purchasers of the securities of Peregrine Systems, Inc. (Nasdaq: PRGN; "Peregrine" or the "Company") from July 19, 2000 through April 30, 2002, inclusive (the "Class Period").
A copy of the complaint filed in this action is available from the Court or can be obtained from our website at http://www.scott-scott.com/, or you can call our office at 800/404-7770.
The action is pending in the United States District Court, Southern District of California. The complaint charges Peregrine Systems Inc. and certain of its officers and directors with issuing false and misleading statements concerning Peregrine's business and financial condition thereby artificially inflating the price of Peregrine securities. Peregrine's former outside auditor, Arthur Andersen LLP, is also named as a defendant. Specifically, as alleged in the complaint, Plaintiff and the Class were injured as a result of defendants' misrepresentations, omissions and other fraudulent conduct alleged. Peregrine stock began its decline on May 1, 2002 following the Company's April 30, 2002 announcement that the release of the its fiscal fourth quarter and year end financial results would be delayed pending the completion of an audit by new outside auditor KPMG. Upon this announcement Peregrine stock fell nearly 50% to close at $3.45. On May 6, 2002 the true facts regarding Peregrine's financial condition, which were previously concealed or hidden, were revealed to the public. On this date, 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. Following this announcement Peregrine stock fell an additional 61% to close at $1.01. As a result of defendants' misconduct, alleged, plaintiff and the class have suffered substantial damages.
If you bought the securities of Peregrine between July 19, 2000 and April 30, 2002 and you wish to serve as lead plaintiff, you are required to move to do so with the Court no later than July 8, 2002. If you would like to discuss this action or have any questions concerning this notice or your rights or interests, please contact Scott + Scott lawyers, Neil Rothstein (nrothstein@scott-scott.com) or David R. Scott (drscott@scott-scott.com) by e- mail or by phone at 800/404-7770. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Scott + Scott, LLC is a Connecticut based law firm engaged in the representation of funds, foundations, endowments, institutions, pension funds, individuals and other entities throughout the world in securities, antitrust and other complex class and non-class action litigation. The firm is committed to client satisfaction and communication. The firm's attorneys litigate in both state and federal courts throughout the nation. The firm has been appointed "lead counsel" on cases nationwide. Scott + Scott, LLC issues this release in accordance with the applicable federal securities laws.
Source: CNN
Shareholder Class Action Filed Against Peregrine Systems Inc...
May 8, 2002: 11:04 a.m. EST
BALA CYNWYD, Pa. (PRNewswire) - The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of California on behalf of all purchasers of the common stock of Peregrine Systems, Inc. ("Peregrine" or the "Company") from July 19, 2000 through April 30, 2002, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges Peregrine Systems Inc. and certain of its officers and directors with issuing false and misleading statements concerning Peregrine's business and financial condition thereby artificially inflating the price of Peregrine securities. Peregrine's former outside auditor, Arthur Andersen LLP, is also named as a defendant. Specifically, as alleged in the complaint, Plaintiff and the Class were injured as a result of defendants' misrepresentations, omissions and other fraudulent conduct alleged. Peregrine stock began its decline on May 1, 2002 following the Company's April 30, 2002 announcement that the release of the its fiscal fourth quarter and year end financial results would be delayed pending the completion of an audit by new outside auditor KPMG. Upon this announcement Peregrine stock fell nearly 50% to close at $3.45. On May 6, 2002 the true facts regarding Peregrine's financial condition, which were previously concealed or hidden, were revealed to the public. On this date, 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. Following this announcement Peregrine stock fell an additional 61% to close at $1.01. As a result of defendants' misconduct, alleged, plaintiff and the class have suffered substantial damages.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, LLP, which has significant experience and expertise prosecuting class actions on behalf of investors and shareholders. For more information on Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than July 8, 2002, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
CONTACT: Schiffrin & Barroway, LLP
Marc A. Topaz, Esq.
Stuart L. Berman, Esq.
Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@sbclasslaw.com
Source: CNN
Weiss & Yourman Announces Shareholder Class Action A...
May 7, 2002: 6:38 p.m. EST
LOS ANGELES (PRNewswire) - 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. 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.
Plaintiff seeks to recover damages on behalf of the Class and is represented by Weiss & Yourman. The firm, with offices in New York and Los Angeles, has extensive experience in complex litigation, particularly securities class actions, and has been appointed lead class counsel in numerous consolidated and multi-district cases. You may visit the company's website at http://www.wyca.com/ .
If you are member of the Class as described above, you may move the court no later than July 8, 2002, to serve as a lead plaintiff for the Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, participate in this suit or have any questions or concerns regarding this notice, or preservation of your rights or interests, please contact:
Weiss & Yourman - Los Angeles
Telephone: (800) 437-7918
email: info@wyca.com
internet: http://www.wyca.com
Source: Yahoo business
Andersen's reputation takes new hit with Peregrine audit
Tue May 7,10:12 AM ET
Matt Krantz USA TODAY
Another accounting blowup Monday dirtied the name of Arthur Andersen, adding to the ex-Enron auditor's litany of troubles.
Peregrine Systems, a small San Diego-based software company Andersen audited until April, said as much as $100 million in revenue may have been wrongly booked in fiscal 2001 and 2002. CEO Steve Gardner and CFO Matt Glass left the company.
Most troubling for Andersen, though, is that Peregrine's problems were found by rival accounting firm KPMG, which was hired April 5 to take over the books.
The news sent Peregrine shares down $1.68, or 65%, to 89 cents a share. It also highlights concerns about Andersen by:
* Raising questions about its link with aggressive management teams. Investors are increasingly worried Andersen used ''gray areas in the rules'' to approve questionable books, says Mark Cheffers, CEO of AccountingMalpractice.com. Andersen spokesman Patrick Dorton says the Peregrine audit followed all ''professional guidelines.''
Peregrine's management declined to give specifics on the accounting problem. But some clues exist in a plea agreement by David Thatcher, former president of software company Critical Path, who pleaded guilty to securities fraud in February.
In his statement filed in federal court, Thatcher said Critical Path and Peregrine conducted a ''swap'' with each other. In this transaction, the firms allegedly inflated revenue by swapping software that each then recorded as a sale. Among other things, Thatcher pleaded guilty to improperly inflating revenue in the swap.
* Shaking the faith of clients still with the firm. Andersen has been dismissed by 316 of its audit clients this year, says Jon McKenna, executive editor of Auditor-Trak.
* Adding to the list of clients that've had accounting problems. Andersen audited 35% of the 20 largest accounting blowups ever, including Enron, Sunbeam, Waste Management and Baptist Foundation of Arizona, Cheffers says.
Few analysts think Peregrine will go bankrupt. But there are bigger questions about Andersen.
''What's amazing is what's able to go through Andersen's (watch) so consistently,'' says David Beck, analyst with RBC Capital Markets.
Source: Yahoo business
Tuesday May 7, 11:09 am Eastern Time
Peregrine Stayed Too Long at the Dance
By James J. Cramer
Peregrine Systems (NasdaqNM:PRGN - news) smells like rotted deer on the side of the highway. The maggots are just beginning to appear, the crows are having a field day and you can't walk near it without being bowled over by the stench.
Yet, it was loved, loved, loved last year at this time. How could so many people fall in love with what amounted to a help-desk software company? How could so many people believe in what is now a bloated carcass?
Source: Yahoo business
Peregrine Shares Hit Skids on Disclosure of an Audit
Tue May 7, 3:03 PM ET
By CHRIS GAITHER The New York Times
Peregrine Systems, the once-highflying enterprise software company, shed 65 percent of its market value yesterday as its stock fell below $1 a share after the company cast doubt on up to $100 million in sales it had reported in the last two years. Two of its top executives resigned.
The disclosures about the sales came after Peregrine's new auditor, KPMG, began to raise questions about some software deals in the 2001 and 2002 fiscal years after it replaced Arthur Andersen in April. The software company said yesterday that it had authorized its audit committee to look into its accounting practices, and it notified the Securities and Exchange Commission (news - web sites) of the internal investigation.
Investors rushed to dump the stock for the second time in a week. Peregrine warned on April 30 that it would delay its earnings report for its fourth quarter and 2002 fiscal year, which ended March 31, because KPMG needed more time to review the books. Shares fell 50 percent, to $3.45, the next trading day. They tumbled a further $1.68, to 89 cents, on heavy trading yesterday after the internal inquiry was disclosed.
Peregrine, which is based in San Diego, said that "certain transactions involving revenue recognition irregularities, totaling as much as $100 million, have been called into question." The deals were recorded as revenue from Peregrine's indirect channels, which include resellers like I.B.M. and Electronic Data Systems, and may have been written off in later quarters, the company said.
Peregrine, which makes software for electronic commerce and information management systems, reported sales of $565 million in 2001.
"At this time we do not know the scope and magnitude of these inaccuracies, or when the investigation will be completed," said John J. Moores, who was named chairman yesterday, resuming the position he had held for a decade until July 2000.
Stephen P. Gardner, who was the chairman and chief executive, and Matthew C. Gless, the chief financial officer, resigned, Peregrine said.
Richard T. Nelson, who has worked for Peregrine since 1995 as general counsel and senior manager, became the acting chief executive. Fred Gerson, the chief financial officer of the San Diego Padres baseball team, replaced Mr. Gless. Charles La Bella, a former United States attorney for the Southern District of California, was hired as senior counsel and executive vice president.
Many Wall Street analysts downgraded the stock after the company's announcement, and one investment bank, First Albany, dropped its coverage. Analysts expressed concern that Peregrine, which had paid billions of dollars to acquire rivals last year, was running out of money. Mr. Nelson said Peregrine had less than $100 million in cash, had defaulted on a $150 million credit line and expected no more bank financing until the audit was completed.
"At the end of the day, I don't think they go bankrupt," said Brad Reback, an analyst with CIBC Worldmarkets. "But I think it will be a very long road ahead of them."
In a conference call with Peregrine, one portfolio manager also questioned the timing of trading activities by a Peregrine founder, Christopher A. Cole. On Feb. 5, with the stock trading around $7, Mr. Cole, who is a Peregrine director, began notifying the Securities and Exchange Commission that he intended to sell his shares. Over the next nine days, he sold 500,000, about half of his stake of 1.04 million shares in Peregrine, netting $3.5 million.
Mr. Cole, who could not be reached for comment through Peregrine or by e-mail message, sold his shares even as other executives were buying thousands of shares of the stock. On Feb. 7, Mr. Gardner bought 9,500 shares; Mr. Gless bought 5,000; and Rodney F. Dammeyer, a director, bought 30,000 shares.
Peregrine's disclosures not only startled investors but also provided ammunition for critics of Andersen, the embattled accounting firm. If the internal audit discovers improperly reported revenue, these critics, including the Justice Department (news - web sites), will point to Peregrine as another example of Andersen's failing in its responsibility to monitor corporations' accounting practices, said J. Edward Ketz, an associate professor of accounting at Penn State University.
"It's going to be added to the evidence list that the Justice Department uses," he said.
Source CNN:
Berger & Montague, P.C. Files Securities Class Actio...
May 9, 2002: 3:31 p.m. EST
PHILADELPHIA (PRNewswire) - On May 9, 2002, the law firm of Berger & Montague, P.C. filed a class action suit against Peregrine Systems, Inc. ("PRGN" or the "Company"), and certain of its principal officers and directors, Stephen P. Gardner, and Matthew C. Gless, in the United States District Court for the Southern District of California on behalf of all persons or entities who purchased or acquired PRGN securities, between July 24, 2001 and May 3, 2002, inclusive (the "Class Period") including any person or entities who acquired Peregrine securities as a result of Peregrine's acquisition of Remedy Corp.
PRGN is a global software company that provides Infrastructure Management Solutions which companies use to manage their assets, from information technology equipment to fleets of vehicles. The Complaint alleges that during the Class Period, defendants violated Section 10(b) and 20(a) of the Securities Exchange Act of 1934, by making materially false and misleading statements regarding Peregrine and its audit activities, including its revenue recognition practices. On May 6, 2002, PRGN announced that its board of directors had authorized its audit committee to conduct an internal investigation into potential accounting inaccuracies, which KPMG, the Company's newly hired independent auditors, had brought to the committee's attention. The transactions involved revenue recognition irregularities relating to the Company's indirect sales channels, totaling as much as $100 million, which may have been improperly recorded in fiscal 2001 and 2002. The Company disclosed that these channel transactions and other accounting matters to be investigated may impact financial results for periods in fiscal 2002 and prior, and that the scope and magnitude of the matters had not been determined. The Company also disclosed that it has informed the SEC of the Company's internal investigation. At the same time, the board announced that Peregrine's Chairman of the Board and CEO Stephen Gardner, and its Chief Financial Officer Matthew Gless, had both resigned, and were being replaced.
If you purchased or acquired Peregrine securities during the period from July 24, 2001 through May 3, 2002, inclusive, you may, no later than July 5, 2002, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party who 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 securities during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class
interests." In Re: IKON Offices Solutions Securities Litigation.
Civil Action No. 98-4286(E.D.Pa.) (partial settlement for
$111 million approved May, 2000).
"...[Y]ou have acted the way lawyers at their best ought to act.
And I have had a lot of cases...in 15 years now as a judge and I
cannot recall a significant case where I felt people were better
represented than they are here ... I would say this has been the
best representation that I have seen." In Re: Waste Management,
Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D. Ill.)
(settled in 1999 for $220 million).
If you purchased or acquired Peregrine securities during the Class Period, please visit our website at http://www.bergermontague.com/ to view the complaint and join the class action or if you have any questions concerning this notice or your rights with respect to this matter, please contact:
Todd S. Collins, Esquire
Phyllis M. Parker, Esquire
Kimberly A. Walker, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Phone: 888-891-2289 or 215-875-3000
Fax: 215-875-5715
Website: http://www.bergermontague.com
e-mail: InvestorProtect@bm.net
Source CNN:
Peregrine Acting CEO Sued By Partner For Role In Alleged Loo...
May 10, 2002: 8:13 a.m. EST
NORCROSS, Ga. (PRNewswire) - Peregrine Systems, Inc. and its acting chief executive Richard Nelson were sued Thursday for their role in the management of a subsidiary -- eXchangeBridge, Inc. (EXB). Success Systems, Inc. is a minority shareholder in EXB and has alleged in the lawsuit that Nelson, as a director at EXB, renegotiated the company's largest service agreement for a large upfront license fee at a huge loss over the term of the three-year contract for the purpose of artificially boosting quarterly revenue for EXB and Peregrine. The suit was filed in Dekalb County Superior Court in Decatur, Georgia.
The complaint alleges that Nelson renegotiated the agreement against the wishes of the other two members of the board and arranged for Peregrine to fire one of them -- the representative from SSI -- on the day of signing the new deal. After the CFO at EXB opposed the recognition of the entire payment in the June 2001 quarter, she was terminated as well. Ultimately, Peregrine was able to maintain its streak of sequential revenue growth.
SSI declined to comment and referred all questions to its attorney, Jeffrey L. Berhold. Mr. Berhold said that the company looked forward to presenting its evidence and making its case in the courtroom.
For further information contact:
Jeffrey L. Berhold
404-872-3800
jeff@berhold.com
This release was issued through eReleases.com - Your Source for Affordable PR. For more information, visit http://www.ereleases.com/
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