WASHINGTON, April 26, 2005 (PRIMEZONE) -- The law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has filed a lawsuit on behalf of purchasers of the securities of BearingPoint, Inc. (NYSE:BE) ("BearingPoint" or the "Company") between August 14, 2003 and April 20, 2005, inclusive (the "Class Period"), 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.
If you purchased or acquired BearingPoint securities during the Class Period, you may, no later than June 24, 2005, move the court to be appointed as Lead Plaintiff. There are certain legal requirements to serve as Lead Plaintiff. Any member of the purported class may move the court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as Lead Plaintiff. To be a member of the class, you need not take any action at this time.
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Philadelphia and Chicago, and is active in major litigation pending in federal and state courts throughout the nation. You may visit the firm's website at www.cmht.com.
The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.