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John Moores and four other former officials of scandal-plagued and bankrupt Peregrine Systems are offering to pay aggrieved investors a collective $55 million, according to papers on file in U.S. District Court. Originally, plaintiffs had sought almost $1.5 billion from Moores alone, because he dumped almost $500 million worth of stock during the fraud period, and that sum could be multiplied by three. However, judges in both state and federal court have rebuked plaintiffs on several key matters along the way, leading to valid complaints that regulatory officials, prosecutors, and judges have let Moores and other board members who dumped their stock off the hook. The other members of the Moores group are former officials Charles Noell III, Christopher Cole, Norris van den Berg, and Richard Hosley. According to court papers, San Francisco attorney Solomon Cera has separately reached an agreement with former Peregrine officials Rodney Dammeyer, Richard Nelson, and Frederic Luddy.

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Comments

Don Bauder Aug. 28, 2008 @ 10:03 p.m.

Response to post #1: Given the massive amount of insider trading before the collapse -- mostly by Moores but also by other officers and directors -- a measly figure like $55 million sets a horrible precedent. But since the judges rendered so many pro-Moores, slanted, totally unjustifiable decisions in the cases, and with regulators and prosecutors doing nothing to punish the obvious malefactors, the plaintiffs probably cannot get more. The whole matter has been a perversion of law, just as the Stallings matter was. Money counts. Justice doesn't. This is more true in San Diego than elsewhere. Best, Don Bauder

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Don Bauder Aug. 28, 2008 @ 10:07 p.m.

Response to post #2: You are correct that this settlement is an affront to the plaintiffs and to securities laws. I also agree that the lawyers will walk off with a huge percentage of the piddling offer. However, would you want to go to trial when biased judges wouldn't give you a fair shake? Some Congressional investigating committee should look into this whole matter. Best, Don Bauder

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JohnnyVegas Aug. 28, 2008 @ 6:27 p.m.

If they take a peanuts offer, as in $55 million in peanuts, they don't deserve "Moore".

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Burwell Aug. 28, 2008 @ 7:41 p.m.

I suspect $55 million is the insurance policy limit and Moores and the others will not have to contribute personal funds. The lawyers likely want their fees and will likely accept the settlement. Legal fees of 1/3 of $55 million is an enormous enticement to settle. Lawyers also receive statutory interest on their fee beginning on the date the suit was filed. William Lerach used to say that attorneys who file class action lawsuits have no clients to account to, and are free to settle cases as they please. On a per share basis this settlement offer probably amounts to very little for individual investors. I say roll the dice and go to trial.

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JohnnyVegas Aug. 28, 2008 @ 11:36 p.m.

Yes, I would go to trial and skip the $55 million peanut payday when a payday 20 times that is sitting around the corner. I would roll the dice on those odds all day long.

As for bias with the judge (is it the worst judge in the southern district>>Huff???)-it does not matter because ANY case with this much money on the line is going to be appealed automatically, so if you get a bad judge just take it up on appeal at the 9th.

Class action firms love to take the easy money though-that is why you need a strong judge to make sure fairness to the class is in the deal. $55 million is a joke.

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Don Bauder Aug. 29, 2008 @ 7:42 a.m.

Response to post #5: The federal judge was not Huff; it was (is) Benitez. Two other judges who have made horrible pro-Moores and pro-insider trading decisions were in state court. Best, Don Bauder

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Fred Williams Aug. 29, 2008 @ 8:29 a.m.

Not only has Moores escaped all punishment for his crimes, he has been richly rewarded.

He has sole use of the publicly financed ballpark, where he can charge $8 for near-beer, and the sky's the limit on ticket prices. This is on top of the ballpark bonds WE ALL pay for, sports fans or not.

His development company, embroiled in scandals from the beginning, has helped transform our city skyline from stunning to shameful. Look at those cookie cutter condos and hotels he owns or developed. The massively troubled ballpark village is an expensive publicly subsidized eyesore, and both companies selected by the tinted CCDC to redevelop the civic center are connected to Moores as well.

He's hired a long list of former elected and appointed officials to do his bidding, Jack McGrory, Tom Sheppard, and Steve Peace prominent among his harem of political prostitutes.

Now he's got his eyes set on the airport. His fat greedy fingers grasp at everything not nailed down, and his porky handouts to democrats and republicans are notorious.

Moores, having defrauded not only Peregrine investors but also the City of San Diego, watches it all from his carribean hideaway, tucking away his assets in convenient locations while negotiating his divorce settlement.

There's a great book and made for television movie just waiting to see what happens next in this saga of greed and corruption.

Hubris: The John Moores Story

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Don Bauder Aug. 29, 2008 @ 11:37 a.m.

Response to post #8: And those condos in the ballpark district have very few residents. Best, Don Bauder

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Burwell Aug. 29, 2008 @ 4:53 p.m.

Moores' wife is going to clean him out financially in the divorce. He's going to have to sell assets at today's deflated prices to cash his wife out, and will likely suffer serious economic losses that he may never recover from. I doubt that Moores invested his largesse from his stock sales in conservative investments like US Treasury Bills. Not with his ego. He's probably heavily involved in esoteric and complicated financial investments of the sort hedge funds invest in, and he's likely facing large losses as a result.

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Don Bauder Aug. 29, 2008 @ 7:01 p.m.

Response to post #9: Moores was heavily into tech stocks before the tech crash of 2000-2002. (The world is still awaiting a recovery from that tech crash.) So he lost some there. The company that he got Valerie Stallings into at a cheap price soared, and then he told her to sell almost at the top. It crashed. He has made a bundle of money, though, from JMI's various real estate schemes. Yes, he is selling his assets, including his multi-million dollar home in Pebble Beach. Best, Don Bauder

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a2zresource Aug. 31, 2008 @ 11:38 a.m.

Between JMI and Carolyn Smith, the CCDC/SEDC scheme of little corporations masquarading as public benefit agencies for redevelopment just might be done here in San Diego, saving the rest of the country from what infests us now by stopping this infection before it spreads.

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Don Bauder Aug. 31, 2008 @ 12:59 p.m.

Response to post #11: An early column I did for the Reader -- back in 2004 -- suggested that CCDC be abolished. Best, Don Bauder

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Don Bauder Aug. 31, 2008 @ 10:04 p.m.

Response to post #13: CCDC is run by and for real estate developers. Best, Don Bauder

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JohnnyVegas Aug. 31, 2008 @ 8:29 p.m.

An early column I did for the Reader -- back in 2004 -- suggested that CCDC be abolished.

The expenses of the SEDC the last 10 years have been $54 million. I don't know what the CCDC expenses were, but there is no way the SEDC brought in enough development OR business to justify that kind of expense.

Someone, somewhere needs to analyze the return on investment of these agencies-and if they are not working kill them off.

I know SEDC is not working and would be willing to bet my last dollar CCDC isn't working either on an ROI/ROTI.

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a2zresource Sept. 1, 2008 @ 9:08 a.m.

Regarding #13

I was wondering how much those quarterly postcards on heavy glossy stock did cost for Carolyn Smith's SEDC to mail out to all of us in Southeast San Diego...

In case you never got one or were not so priviliged as to live south of the 94, check out the web site color scheme at sedcinc.com for its kind of Santa Fe pastels to get a rough idea. The post cards never said anything substantial, just some SEDC self-promotional line that nobody can remember... but the color scheme thing reminded me of a section in Michael Korda's Power on claiming office territory by painting the hallways with one's theme colors.

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Don Bauder Sept. 1, 2008 @ 1:14 p.m.

Response to post #15: Those postcards cost plenty. Best, Don Bauder

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Don Bauder Sept. 2, 2008 @ 12:42 p.m.

Post #17: The hearing that was to be held at 10:30 a.m. before U.S. District Judge Roger Benitez has been postponed and no new date has been set. Best, Don Bauder

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Don Bauder Sept. 2, 2008 @ 4:07 p.m.

Post #18: Oops. The date of the hearing that has been postponed is Sept. 8. Best, Don Bauder

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