Cooley Achieves Major White Collar Victory

SAN DIEGO, CA, Mar 21 (MARKET WIRE) --
Cooley Godward Kronish LLP achieved a major trial victory in San Diego federal
court
yesterday on behalf of client Daniel F. Stulac, one of the first outside
auditors in the post-Enron era to go to trial against allegations of direct
collusion
with corrupt management. The jury announced yesterday that it was deadlocked
following the six-week trial, with six jurors voting not guilty on all charges.
Mr. Stulac faced a maximum of 30 years in prison if convicted.

Mr. Stulac, formerly a partner of the former Big 5 accounting firm Arthur
Andersen LLP, was charged in October 2004 by the U.S. Attorney's Office in
San Diego with securities fraud, wire fraud and bank fraud in connection with
the
financial reporting of Peregrine Systems, Inc. Peregrine was a San
Diego-based software company that filed for bankruptcy in 2002 after it
announced that it was conducting an internal investigation of possible
misstatements in previous financial reports. The investigation resulted
inthe resignations of Peregrine's CEO and CFO. At the time of the
indictmentagainst Mr. Stulac and ten other defendants, the U.S. Attorney
described the case
as "the largest fraud in the history of the Southern District of California."

Cooley's team, led by San Diego-based partner Michael Attanasio,
successfully
defended Mr. Stulac against allegations that he and others directly
conspired with Peregrine's management to manipulate earnings and deceive
investors.
With six jurors voting not guilty, the twelve-member jury declined to find
that Mr. Stulac was involved in the alleged Peregrine conspiracy. The Cooley
team presented overwhelming evidence that Mr. Stulac and his audit team were
misled by
Peregrine'smanagement and were unaware of the fraud perpetrated by Peregrine's
CEO, CFO,
Controller and others. The jury rejected the Government's claims that Mr.
Stulac directly colluded with management, participated in a cover-up, and in
doing
so, lied to his own audit team and partners.

Last August, following a three-month trial, a jury was deadlocked with eight
votes favoring acquittal of Cooley's client Mr. Stulac on all counts. The U.S.
Attorney determined to retry Mr. Stulac in a trial that began earlier this year
and concluded with yesterday's mistrial.

"This win is symbolic because it sends a message to the Justice
Department and the SEC that they cannot overreach in financial fraud cases in
the
post-Enron era," said Mr. Attanasio. "It is one thing to say that an auditor
was associated with a company that was cooking its books; it is quite another
to prove that he was knowingly involved in the fraud," Mr. Attanasio
explained.

"The government fell far short of its burden on the latter claim and this
chapter of the Peregrine case should now be put to bed," Mr. Attanasio said.

Between 2002 and 2004, the FBI and the United States Attorney for the
Southern District of California conducted an investigation of Peregrine. Eleven
former Peregrine officials and business partners have pled guilty to various
charges, including securities fraud, wire fraud, bank fraud, conspiracy,
falsifying books and records, and obstruction of justice. Mr. Stulac, along
with former Peregrine executive Patrick Towle, are the only defendants to go
through two trials without being found guilty of a single count.

Cooley's litigation team, led by Mr. Attanasio, included attorneys Aaron
Arnzen, Trent Packer, Samantha Everett and Joe Leventhal.

About Cooley's Litigation Practice

Cooley's 300-lawyer litigation department represents many global businesses,
particularly in the technology and life sciences sectors, in high-profile
trials and major litigation matters in state and federal venues across the
country. The Firm has one of the largest patent and IP litigation practices
in the country. Cooley litigators also handle a wide range of white collar,
regulatory and governmental enforcement matters, and have depth in securities
litigation, antitrust, a wide range of consumer class actions, bankruptcy, tax
controversy, employment and commercial litigation.

Last year The National Law Journal named Cooley's litigation department to
its prestigious "Defense Hot List." This recognition validates the Firm's
growing reputation as a "short list" choice of general counsel and boards of
directors in the most important matters and disputes facing their companies.

About Cooley Godward Kronish LLP

Cooley Godward Kronish's 650 attorneys have an entrepreneurial spirit and
deep, substantive experience, and are committed to solving clients' most
challenging legal matters. From small companies with big ideas to
international enterprises with diverse legal needs, Cooley has the breadth of
legal resources to enable companies of all sizes to seize opportunities in
today's
global marketplace. The Firm represents clients across a broad array of
dynamic industry sectors, including technology, life sciences, financial
services,
retail and energy.

The Firm has full-service offices in major commercial, government and
technology centers nationwide: Palo Alto, CA, New York, NY, San Diego
CA,San Francisco, CA, Reston, VA, Broomfield, CO, Washington, DC and Boston, MA.

For additional information about the Firm, please visit www.cooley.com.

Media Contact:
Ashley Kanigher
650-843-5721
akanigher@cooley.com

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