Final Settlements Approved in Peregrine Systems Securities Litigation — Total Recovery Exceeds $117 Million
More than $117 million will be distributed to class members in the Peregrine Systems, Inc. Securities Litigation case.
San Francisco, CA (PRWEB) November 10, 2009
Gold Bennett Cera & Sidener LLP today announced that a Federal Court has granted final approval of settlements totaling $56,075,000 in litigation relating to Peregrine Systems, Inc. (“Peregrine”). These settlements, plus prior recoveries, bring the total obtained for former Peregrine shareholders to more than $117,000,000.
The lawsuit stemmed from a massive accounting scandal at Peregrine, which ultimately led to a $500 million financial restatement. The shareholder class action lawsuit alleged that the defendants made materially false and misleading statements in public filings, press releases, and other investor communications from July 22, 1999 through May 3, 2002, resulting in Peregrine securities trading at artificially inflated prices. After Peregrine filed for bankruptcy protection in September 2002, Sol Cera of Gold Bennett Cera & Sidener LLP together with co-counsel pursued claims in the Bankruptcy Court, which led to a significant recovery for shareholders. The case also proceeded against several officers and directors of Peregrine, as well as Peregrine’s former auditor, Arthur Andersen. Several former Peregrine officers, including the CEO and CFO, have pled guilty to criminal charges related to the accounting scandal.
“We have persisted through many obstacles to achieve this result and are pleased that the victims of Peregrine’s accounting fraud will finally receive some compensation for their losses,” said Solomon Cera, a partner at Gold Bennett Cera & Sidener LLP. “The recovery we obtained from the outside directors of the company may be the largest in the history of class action securities litigation from personal, non-insurance resources, making the settlements especially noteworthy,” added Cera.
It is expected that a distribution of the recovery will occur in the first quarter of 2010. The lawsuit, in re Peregrine Systems, Inc. Securities Litigation, is pending in the United States District Court for the Southern District of California (case no. 02-cv-870-BEN(RBB)).
About Gold Bennett Cera & Sidener LLP:
For more than 40 years, Gold Bennett Cera & Sidener LLP has litigated numerous significant class action, securities, antitrust, consumer, and other complex business lawsuits. The firm has recovered more than $2 billion for its clients. For more information about Gold Bennett Cera & Sidener LLP, contact Solomon Cera, Esq. (scera at gbcslaw dot com) or Gwendolyn Giblin, Esq. (ggiblin at gbcslaw dot com) at 800-778-1822.