BearingPoint, Inc. Cohen Milstein is court-appointed liason counsel in this 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. Currently, Cohen Milstein is actively involved in this case and serves as Liaison Counsel for 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. |
