WASHINGTON, April 28 LAWFUEL – The Law News Network — Finkelstein, Thompson & Loughran has filed a class action lawsuit in the United States District Court for the
Eastern District of Virginia on behalf of all purchasers of BearingPoint, Inc.
securities between August 14, 2003 and April 20, 2005, inclusive (the “Class
Period”). The lawsuit was filed against BearingPoint, Inc. (“BearingPoint” or
“the Company”) (NYSE: BE), certain former officers, and BearingPoint’s outside
auditor, PricewaterhouseCoopers, LLP. The Complaint asserts claims for
violations of the federal securities laws, as described below.
The Complaint alleges that defendants violated the federal securities laws
by issuing quarterly and yearly financial statements for BearingPoint which
materially misrepresented the Company’s financial performance and
profitability in violation of Generally Accepted Accounting Principles
(“GAAP”). Plaintiff specifically alleges that defendants violated GAAP by: a)
materially overstating the value of (and failing to write down the value of)
the goodwill associated with certain foreign acquisitions long after it had
become apparent that the value of such assets was impaired; and b) materially
overstating earnings as a result of its failure to properly write down the
value of these impaired assets.
On April 20, 2005, it was revealed that the Company’s previously filed
annual financial statements for 2003 and quarterly financial statements for
2004 were materially false, should not be relied upon, and would have to be
restated to accurately reflect the Company’s true performance. It was also
revealed that BearingPoint’s prior earnings reports were false, that earnings
would be materially reduced upon the restatement, and that the Company would
be forced to write-down between $250 million and $400 million in assets.
In reaction to these revelations, BearingPoint’s share price fell $2.49 on
April 21, 2005, down 32 percent from its prior closing price, thereby damaging
plaintiff and the Class.
With offices in Washington, DC and San Francisco, CA, Finkelstein,
Thompson & Loughran has spent almost three decades delivering outstanding
representation to institutional and individual clients in connection with
securities and other finance-related litigation, and has been appointed as
lead or co-lead counsel in dozens of shareholder class actions. Indeed, in the
past ten years, the firm has served in leadership roles in cases that have
recovered over $1 billion for investors and consumers.
If you bought or otherwise acquired BearingPoint securities between August
14, 2003 and April 20, 2005, inclusive, you may request that the Court appoint
you as lead plaintiff. A lead plaintiff acts on behalf of other class members
in directing the litigation. Any member of the proposed class who wishes to
move the Court to serve as lead plaintiff must do so no later than June 24,
2005. In order to serve as lead plaintiff, you must meet certain legal
requirements. If you have any questions concerning this notice or your rights
or interests, please contact Donald J. Enright or Benjamin J. Weir with FTL’s
Washington, DC office, at (866) 592-1960, or by email at [email protected] or
Web Site: http://www.ftllaw.com