BearingPoint Inc. Case 03/10/2006

ALL PERSONS WHO PURCHASED BEARINGPOINT, INC. COMMON STOCK DURING THE PERIOD FROM AUGUST 14, 2003 THROUGH APRIL 20, 2005 MAY BE ENTITLED TO PARTICIPATE IN THE SETTLEMENT.

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Company Name(s): 
BearingPoint
Case Name: 
BearingPoint Inc. Case 03/10/2006
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Case Status: 
Settlement Approved
Affected Securities
NYSE: BE
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/10/2006
Class Period Begin: 
08/14/2003
Class Period End: 
04/20/2005
Court of Filing: 
U.S. District Court for the Eastern District of Virginia
Date Settled: 
06/24/2010
Settlement Amount: 
$7,500,000
Deadline to Participate in Settlement: 
11/03/2010
Settlement Notice: 
application/pdf iconnotice_BearingPoint2010.pdf
Settlement Proof: 
application/pdf iconproof_BearingPoint2010.pdf
Summary: 

According to a press release from a law firm a shareholders has filed a lawsuit on behalf of purchasers of the securities of BearingPoint, Inc. (NYSE:BE) (”BearingPoint” or the “Company”) in the United States District Court for the Eastern District of Virginia.

The Complaint charges BearingPoint and certain of its former officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The Complaint alleges that defendants’ financial reports and statements issued from August 14, 2003 through April 20, 2005 were false and misleading as they failed to disclose: (1) that the Company had materially overstated its net income during the Class Period by approximately $250 - $400 million; (2) that the Company had inflated its earnings by improperly accounting for charges relating to acquisitions; (3) that the Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles (”GAAP”); and (4) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company.

On April 20, 2005, after the market closed, BearingPoint reported that the Company was going to restate its financial results for fiscal year 2003 and the first three quarters of 2004. The Company further disclosed the commencement of an informal investigation by the Division of Enforcement of the Securities and Exchange Commission. The next day, shares of the Company’s stock fell by over 30% to close at $5.28, in extremely heaving trading.

On July 26, 2005, the court appointed Matrix Capital Management Fund, L.P., Matrix Capital Management Fund, II, L.P., and Matrix Capital Management Fund (Offshore), Ltd. (“Matrix”) as lead plaintiffs. On January 17, 2006, the court certified a class consisting of all persons who acquired common stock during the period between August 14, 2003 and April 20, 2005, inclusive. On March 10, 2006, Lead Plaintiffs filed a First Amended Complaint against defendants, which defendants moved to dismiss. On September 12, 2007, Judge Liam O-Grady entered an order dismissing the case against all defendanst, with prejudice. The case is currently on appeal to the United States Court of Appeals for the Fourth Circuit.