• Scam Diego alerts

Federal court in San Diego has approved $56 million in settlements in the Peregrine Systems fraud. This was approved by the parties Oct. 16, as reported here, pending the court's approval. The funds will primarily come from John Moores, former chairman, and other outside directors. (One of the key arguments in the ongoing cases was that Moores was intimately involved in company matters and was hardly an outside director, but that is now academic.) When previously-settled cases are included, particularly $30 million from former accounting firm Arthur Andersen, the total comes to $117 million, according to the San Francisco-based law firm of Gold Bennett Cera & Sidener. "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," says Sol Cera, partner in the firm.

  • Scam Diego alerts

Comments

Visduh Nov. 10, 2009 @ 1:59 p.m.

So this settlement sets a record of sorts. Big whoop. The total settlement doesn't come close to covering the losses to those who were defrauded. Moores gets a pass on being prosecuted. Where's the justice?

0

Don Bauder Nov. 10, 2009 @ 4:29 p.m.

Response to post #1: As I have said so many times, Moores unloaded $487 million worth of stock during the fraud period. He sold $650 million, almost all he controlled, during his time with the company. During one period, the company lawyer warned all board members not to sell stock, because they had knowledge of an upcoming acquisition that was expected to hurt the stock. Moores sold massively anyway. He was NOT an outside director. He was chairman and had an office in the Peregrine building. The company bragged that it was run by the office of the chairman. The board was regularly told by the CEO of the accounting shenanigans and other tricks that kept Peregrine stock afloat. Records of board meetings showed that. But judge after judge would not let the case get to a jury. It would make a good study for a law student, except he/she might get depressed about the justice system and drop out of law school. Best, Don Bauder

0

Sign in to comment

Get $5 off any Reader event

Sign up for our email list to get your promo code

Close