NEW YORK, June 10, 2005 (PRIMEZONE) -- The deadline is approaching for investors to seek appointment by the Court as lead plaintiff in the class action lawsuit against BearingPoint, Inc. ("BearingPoint" or the "Company") (NYSE:BE).
Pomerantz Haudek Block Grossman & Gross LLP has filed a class action lawsuit on behalf of one of its institutional investor clients against BearingPoint, Inc. ("BearingPoint" or the "Company") and several of its executive officers. The action, which is pending in the United States District Court for the Eastern District of Virginia, is brought on behalf of a class of investors who purchased the securities of BearingPoint during the period of April 14, 2003 through and including April 20, 2005 (the "Class Period").
If you purchased BearingPoint securities during the Class Period and either sold those securities at a loss or still hold them, you may request that the Court appoint you as lead plaintiff. The deadline for filing lead plaintiff applications is June 24, 2005.
The action alleges, among other things, that the defendants violated the federal securities laws by making materially false and misleading statements regarding the Company's finances during the Class Period, which resulted in the artificial inflation of the Company's stock price. Specifically, it is alleged that the Company had materially overstated its earnings and understated its goodwill by approximately $250-$400 million, and improperly recorded tens of millions of dollars in expenses. It is further alleged that defendants failed to adequately institute their new financial reporting systems, and that as a result, the Company was unable to generate accurate and timely financial statements.
On March 17, 2005, the Company disclosed that it would delay the filing of its annual report on Form 10-K due to the internal control issues it was experiencing. It was not until April 20, 2005, that the Company revealed the full extent of its financial disarray - that it would be required to take an impairment to goodwill of approximately $250-$400 million; that the Company had discovered at least $37 million of accounting "errors" that would likely necessitate restatement of the Company's financial results for 2003 and 2004; that the SEC was investigating the Company's accounting, and that the Company may not be able to continue as a "going concern."
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion dollar damages awards on behalf of class members.
If you have any questions concerning this notice or your rights or interests, please contact Teresa Webb at 1.888.4.POMLAW or tlwebb@pomlaw.com