NEW YORK, April 26, 2005 (PRIMEZONE) -- Roy Jacobs & Associates has filed a class action lawsuit on April 26, 2005 in the United States District Court for the Eastern District of Virginia on behalf of all purchasers who purchased BearingPoint, Inc. securities during the period August 14, 2003 to April 20, 2005 (the "Class Period"). The lawsuit was filed against BearingPoint, Inc. ("BearingPoint" or "the Company") (NYSE:BE), its former Chairman, Chief Executive Officer, and President Randolph C. Blazer, its former Chief Financial Officer Robert S. Falcone, and BearingPoint's outside auditor, PricewaterhouseCoopers, LLP. The Complaint sets forth allegations that the defendants violated the federal securities laws by defrauding purchasers of BearingPoint securities during the Class Period, as described below.
For further information you may call toll free, 888-884-4490, or contact Roy Jacobs & Associates by e-mail by writing to classattorney@pipeline.com.
The Complaint alleges that defendants violated the federal securities laws by issuing quarterly and yearly financial statements for BearingPoint which were materially false and misleading. These quarterly and yearly financial statements reported to shareholders how the Company had performed, as to earnings and other critical financial information. BearingPoint's financial statements were required to be prepared according to Generally Accepted Accounting Principles, ("GAAP"), which are a set of accounting rules designed to require companies to report financial information in an accurate manner. The defendants represented that BearingPoint's financial statements were prepared applying these important principles. It is alleged in the Complaint that defendants violated these GAAP principles in preparing BearingPoint's financial statements, and BearingPoint's financial statements did not reflect the true financial condition of the Company.
On April 20, 2005, it was revealed that the Company's previously filed annual financial statements for 2003 and quarterly financial statements 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 and that earnings would be materially reduced upon the restatement. It was also revealed that the Company would be forced to write-down between $250-$400 million in assets.
As a result of these revelations, which were completely unexpected, on April 21, 2005, the price of BearingPoint's shares dropped 40 percent in value on greatly elevated trading volume of 67 million shares. If you purchased BearingPoint securities during the Class Period, you may qualify to serve as Lead Plaintiff on behalf of the Class, which consists of all persons and entities who purchased BearingPoint securities from August 14, 2003 to April 20, 2005. All motions for appointment as Lead Plaintiff must be filed with the Court no later than June 24, 2005.
Please feel free to contact Roy L. Jacobs to discuss the pending action, and your rights in this matter.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca