PHILADELPHIA, April 29, 2005 (PRIMEZONE) -- The law firm of Donovan Searles, LLC, 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, entitled Sutton v. Bearing Point, Inc. et al., 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.
The investor in the case is represented by the law firm of Donovan Searles, LLC and others. The members of Donovan Searles, LLC have significant experience in litigating class actions on behalf of individual and institutional investors, including hedge funds and others. The firm maintains a website at http://www.donovansearles.com
If you are a member of the class described above, you may move the Court to serve as lead plaintiff. In particular, institutional or hedge fund investors purchasing large positions during the Class Period may want to assert an active role in the litigation, though they are not required to do so. If you wish to discuss this action, or have any questions concerning your rights, please contact Michael D. Donovan at Donovan Searles, LLC, 1845 Walnut Street, Suite 1100, Philadelphia, PA 19103; phone: (800) 619-1677 or (215) 732-6067; e-mail: mdonovan@donovansearles.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.