Posted on 08/27/2002 6:03:41 AM PDT by Liz
SANTA FE, N.M. (AP) - Stockholders of a computer software company under investigation for its accounting practices have sued current and former board members, including Democratic gubernatorial nominee Bill Richardson, for failing to oversee its financial affairs.
Richardson resigned in June from Peregrine Systems Inc.'s board and has distanced himself from the financial problems of the company, which had been run by his brother-in-law.
At least five lawsuits have been filed against Richardson and other board members of the San Diego company, which has said it may have overstated as much as $100 million in revenue and may have to restate three years of earnings.
The former New Mexico congressman and energy secretary under President Clinton says he was unaware of the accounting irregularities, which have triggered investigations by the Securities and Exchange Commission and a congressional committee.
Peregrine's stock plummeted after the company's accounting troubles became public in the spring. It closed Monday at 49 cents, less than 2 percent of its 52-week high of $27.50.
One lawsuit said the directors cost stockholders millions of dollars by allowing wrongful manipulation of earnings and inadequately supervising employees.
The directors can be liable for any false or misleading statements the company made because they signed the registration statement filed with the SEC, said Theodore Hess-Mahan, a Boston lawyer in a class-action lawsuit involving Peregrine.
Peregrine fired Arthur Andersen as its auditor in April and fired its replacement auditor, KPMG, in May. KPMG alleged possible fraud at the company in a letter it sent to the SEC.
Richardson's brother-in-law, Steve Gardner, resigned as Peregrine's chairman and chief executive office May 6 when the irregularities were disclosed.
Richardson became a board member in February 2001 and resigned after winning the Democratic nomination for governor in New Mexico's June 4 primary. He held no management positions, owned no stock and was paid $10,000 for attending eight board meetings, his campaign said.
Dave Contarino, Richardson's campaign manager, said Richardson "feels he fulfilled his role" as a Peregrine director and "had no role in the day-to-day operations or decision-making of that corporation."
Contarino and Peregrine spokeswoman MeeLin Nakata said they could not comment on the pending litigation.
Richardson's ties to Peregrine have not played prominently in the race for governor. He faces Republican nominee John Sanchez and Green Party candidate David Bacon in November.
Pray tell, when will GX investores get the urge? Terry McAwful is a nice, fat sitting duck.
Were it a pubbie, the Clymers would say "trying to distance himself". In any event, what a wonderful development...
The former New Mexico congressman and energy secretary under President Clinton says he was unaware of the accounting irregularities, which have triggered investigations by the Securities and Exchange Commission and a congressional committee.
Who was the person that signed off the waiver for a Clinton Donor to be buried in Arlington - Richardson or Holbrooke?
Are you referring to the Clinton Donor who had to be dug up and moved out of Arlington in disgrace b/c it was revealed he had lied about his military service?
(Betty) Currie (Clinton's secretary) was also involved in helping Lewinsky get some high-level job assistance from Clinton friend Vernon E. Jordan Jr. and U.N. Ambassador Bill Richardson, who testified before Congress about it yesterday.
Richardson, Clinton's nominee to be secretary of energy, was questioned under oath during his Senate confirmation hearing about a job offer he made to Lewinsky last fall.
Under questioning by Energy and Natural Resources Committee Chairman Frank H. Murkowski (R-Alaska), Richardson said deputy White House chief of staff John D. Podesta, a friend, called him and asked if he'd interview Lewinsky, then at the Pentagon press office. "He said this was a friend of Betty Currie. . . . He asked me as a favor to Betty to interview her," said Richardson, adding that Podesta "did not even know what her name was when he asked me to interview her."
Richardson said he and two aides met with Lewinsky last October in a Watergate Hotel suite he often used in Washington. "She was impressive," said Richardson. "I remember my chief of staff being impressed with Ms. Lewinsky's gregariousness, her ability to express herself. She came very well-prepared," he told the committee.
Murkowski said he found it "curious" that Richardson would be interviewing applicants for a $30,000-a-year political outreach job. But Richardson said it was "a very normal procedure" for him to sit in on interviews.
Richardson noted that the discussions with Lewinsky occurred well before Starr received Tripp's tapes, in which the young administration aide purportedly discussed efforts by Clinton allies to get her a job in New York.
Was under criminal investigation by the State Department when he died. Had exceeded a $25,000 limit in election campaign contributions
Was among the 400 richest Americans, estimated fortune of $315 million Contributed $1-$3 million annually to charities and the arts Had contributed to liberal activist to finance anti-war activities in opposition of the Vietnam War.
Claimed to have served as a Merchant Marine during World War II, aboard a ship he claimed was torpedoed
Clinton had Larry's remains placed at Arlington National Cemetery, but after learning that the World War II story was false, public outcry resulted in disenturnment of Larry's remains from Arlington under the order of a reluctant Bill Clinton.
Patrick F. Kennedy, then-assistant secretary of state for administration, (Teddy's son now a RI Cong) asked the Army to approve a waiver for Lawrence because an injury while in the service would have earned him a Purple Heart. The medal would entitle him to an Arlington burial.
Wonder how Richardson will spin this on the IMUS Show? IMAN on vacation until after Laor Day. But sure he will have Richardson on there as he has before.
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