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Richard Pearson of Seeking Alpha has an excellent story, dated April 1, on massive insider selling at San Diego's ServiceNow, an information tech company that went public last summer. "ServiceNow insiders have now sold over $400 million of stock, even after its [Initial Public Offering]" in which insiders also dumped shares. Just in the past eight weeks, insiders have sold $80 million of shares, notes Pearson. "In the past, ServiceNow directors and management, including founder Frederic Luddy and directors John Moores and Charles Noell, were big early sellers of their previous venture, Peregrine Systems," which was one of San Diego's largest financial frauds. "They pulled in over half a billion dollars from sales of stock -- even though these sales had occurred during RESTRICTED PERIODS designed to prevent selling by insiders."
Luddy has already dumped $12.7 million worth of ServiceNow stock, Moores $20.6 million and Noell $9.1 million, reports Pearson. Another seller has been JMI Funds, connected to both Moores, its namesake, and Noell.
"ServiceNow Director John Moores had previously been chairman of Peregrine Systems, and his [venture capital] firm JMI Capital held a substantial stake. He had recruited Fred Luddy to assume the eventual role of chief technology officer," writes Pearson. "ServiceNow Director Charles Noell served as a Peregrine director and as the audit committee chairman."
Moores was chairman of Peregrine from 1990 to 2000 and from May 2002 through March 2003. He had an office in the building. He had selected many of the top executives, according to civil suits. He had paid 33 cents to 59 cents apiece for his stock. Civil and criminal investigators charged that the company was massively inflating its revenues through phony transactions. A number of officers pleaded guilty to criminal charges and were incarcerated. But Moores and the board got off -- rising eyebrows about bad judges and regulators. Moores dumped $487 million of Peregrine stock during the fraud period, and $650 million worth -- almost all he controlled -- from the time he began accumulating the shares. Other board members also sold heavily. But in the end, directors paid only a total of $56 million to settle lawsuit claims.
Richard Pearson of Seeking Alpha has an excellent story, dated April 1, on massive insider selling at San Diego's ServiceNow, an information tech company that went public last summer. "ServiceNow insiders have now sold over $400 million of stock, even after its [Initial Public Offering]" in which insiders also dumped shares. Just in the past eight weeks, insiders have sold $80 million of shares, notes Pearson. "In the past, ServiceNow directors and management, including founder Frederic Luddy and directors John Moores and Charles Noell, were big early sellers of their previous venture, Peregrine Systems," which was one of San Diego's largest financial frauds. "They pulled in over half a billion dollars from sales of stock -- even though these sales had occurred during RESTRICTED PERIODS designed to prevent selling by insiders."
Luddy has already dumped $12.7 million worth of ServiceNow stock, Moores $20.6 million and Noell $9.1 million, reports Pearson. Another seller has been JMI Funds, connected to both Moores, its namesake, and Noell.
"ServiceNow Director John Moores had previously been chairman of Peregrine Systems, and his [venture capital] firm JMI Capital held a substantial stake. He had recruited Fred Luddy to assume the eventual role of chief technology officer," writes Pearson. "ServiceNow Director Charles Noell served as a Peregrine director and as the audit committee chairman."
Moores was chairman of Peregrine from 1990 to 2000 and from May 2002 through March 2003. He had an office in the building. He had selected many of the top executives, according to civil suits. He had paid 33 cents to 59 cents apiece for his stock. Civil and criminal investigators charged that the company was massively inflating its revenues through phony transactions. A number of officers pleaded guilty to criminal charges and were incarcerated. But Moores and the board got off -- rising eyebrows about bad judges and regulators. Moores dumped $487 million of Peregrine stock during the fraud period, and $650 million worth -- almost all he controlled -- from the time he began accumulating the shares. Other board members also sold heavily. But in the end, directors paid only a total of $56 million to settle lawsuit claims.