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John Moores, former chairman of the fraud-suffused Peregrine Systems, along with four former officers and directors, has agreed to what a judge calls a "very significant" settlement in a major civil case, according to papers on file in U.S. District Court. Moores dumped $487 million of his Peregrine stock during the period that the company's books were cooked. The company collapsed in bankruptcy, and several former executives have been criminally convicted of fraud. Moores sold more than $600 million -- almost all he controlled -- during the company's fraud-tainted existence. Victims filed suits in both state and federal courts, and several are now on appeal. Retired U.S. Magistrate Edward Infante, serving as a moderator, has helped hammer out a monetary settlement -- said to be "very significant" -- that will resolve a major portion of the litigation. However, there is a battle between two San Francisco lawyers: Solomon Cera, who represents a group of plaintiffs, and Robert Friese, who was named by the bankruptcy court as the ligitation trustee. This spring, Cera moved to replace Friese with Richard Kipperman, San Diego bankruptcy specialist, who would be named the successor litigation trustee. An appellate court rejected the Kipperman nomination, saying that he was not a party to the litigation. Kipperman's appointment is now on hold. Friese, fighting back, claims that Cera was negotiating settlements without even telling Friese what was going on. Friese says his removal was effectuated without just cause. Meanwhile, Cera has reached a a settlement agreement with three other Peregrine insiders without informing Friese, according to Friese's complaint. There will be a hearing before U.S. District Court Judge Roger Benitez Sept. 8 at 10:30 a.m. to hear both sides in the Friese/Cera dispute. Many of the most important documents are still under seal.

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Comments

Don Bauder Aug. 28, 2008 @ 10:22 p.m.

Response to post #3: Agreed. As I said in a post above, the disgraceful handling of this case should be investigated by a Congressional committee. Best, Don Bauder

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JohnnyVegas Aug. 27, 2008 @ 10:34 p.m.

Richard Kipperman (and some of his cronies at the DOJ's office) is an idiot. And by the sound of things so is Cera.

You don't go around behind a BK Trustee's back and do backroom deals.

Unless Moore loses all of his 600 million it is not much of a deal. The fact is Moores should lose his 600 Million PLUS another 600 million as a fine to set an example that this nonsense is taken seriously.

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Don Bauder Aug. 28, 2008 @ 6:39 a.m.

Response to post #1: Kipperman is an astute guy. So is Friese. The DOJ, which used Moores's self-generated whitewash as a template for its criminal pursuits of other Peregrine executives, deserves the epithet you give it: idiot. I realize there are several holes in this blog entry, partly because so many key things are sealed. How much is the proposed settlement for? Is Friese protesting the amount of the settlement? We know he is protesting the distribution of it between the two groups of aggrieved investors. Hopefully, more should be coming out, but the courts, DOJ and SEC -- which have disgraced themselves by protecting Moores -- may keep the key information quiet. That happened in the shameful Valerie Stallings whitewash, in which both federal and local government were complicit. Best, Don Bauder

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JohnnyVegas Aug. 28, 2008 @ 6:32 p.m.

$55 million is not "significant" in realtion to the losses in this case.

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Don Bauder Sept. 2, 2008 @ 12:40 p.m.

Post #5: The hearing on Sept. 8 before U.S. District Judge Roger Benitez has been postponed and no new date has been set. Best, Don Bauder

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