On December 3, 2007, the California Superior Court in San Diego County granted summary judgment on all claims in favor of the former outside director and audit committee chairman of Peregrine Systems represented by our firm. Plaintiffs had unsuccessfully asserted a number of violations of California securities laws and various California common-law causes of action including fraud and negligent misrepresentation. Plaintiffs sought over $26 million in pre-interest damages, including more than $14 million for “emotional distress.” The court also denied Plaintiffs’ motions to stay all proceedings pending completion of the Peregrine-related criminal trials and for a one-year continuance. Plaintiffs appealed the trial court’s grant of summary judgment and denial of their request for stay and continuance. After briefing and oral argument, on March 20, 2009, the California Court of Appeals for the Fourth Appellate District affirmed the trial court’s decision in full, finding that “[w]hether considered individually or cumulatively, none of the evidence that plaintiffs identify in their brief raises a genuine issue of material fact as to defendants’ knowledge of the fraud at Peregrine.” In July 2009, the California Supreme Court denied the Plaintiffs’ Petition for Review and for depublication of the Court of Appeals decision.
