San Diego (Feb. 27, 2003) -- Bankrupt software manufacturer Peregrine Systems Inc. said its chairman John J. Moores, and three other board members would resign under an agreement reached as part of the company's Chapter 11 reorganization.
Peregrine is under currently under criminal investigation by the Department of Justice and also under a probe by the Securities and Exchange Commission. An internal investigation revealed the company had inflated its revenue by as much as $250 million from April 1999 to the end of 2001 by improperly booking the sale of accounts receivables as revenue.
Peregrine, filed for Chapter 11 last year and filed suit against former Big Five firm Arthur Andersen, its auditor, charging the firm was responsible for the company's problems.
In November, a former Peregrine official pleaded guilty to conspiracy to commit bank fraud, in what prosecutors said would be the first of several convictions of former company officers who tried to hide the company’s financial condition from analysts and investors.
The company also must file audited financial statements for the last three years.
Company creditors moved to replace the board saying the accounting scandal happened on their watch.
If the agreement is approved by a judge and the company re-files its financial statements, Moores will resign along with other outside board members, Christopher Cole, Charles E. Noell III and Thomas G. Watrous.
-- Electronic Accountant Newswire staff
