Milberg Weiss Announces The Filing Of A Class Action Suit Against BearingPoint, Inc.

The law firm of Milberg Weiss Bershad & Schulman LLP announces that a class action lawsuit was filed on May 2, 2005, on behalf of purchasers of the securities of BearingPoint, Inc. ("BearingPoint" or the "Company") (NYSE: BE) between August 14, 2003 and April 20, 2005, inclusive, (the "Class Period") seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").


If you bought the securities of BearingPoint between August 14, 2003 and April 20, 2005, and sustained damages, you may, no later than June 24, 2005, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad & Schulman LLP, or other counsel of your choice, to serve as your counsel in this action.

The action is pending in the United States District Court for the Eastern District of Virginia against defendants BearingPoint, Randolph C. Blazer (former Chief Executive Officer); Roderick C. McGeary (former Chief Executive Officer during the Class Period); and Robert S. Falcone (Chief Financial Officer from April 2003 to January 2005). A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss's website at: http://www.milbergweiss.com. The Complaint alleges that During the Class Period, defendants issued a series of false statements to the public, assuring investors that the Company was on track to meet or exceed Wall Street earnings expectations, and that the Company's internal controls were strong and improving. Indeed, BearingPoint's top executives signed certifications affirming the integrity of the Company's internal controls, which were filed with the SEC.

The Complaint further alleges that the defendants' public statements concerning BearingPoint's financial results, international operations, and adequacy of the Company's internal controls were false in that they failed to disclose facts: (1) that the Company had materially overstated its net income and earnings per share and undervalued its goodwill by at least $250 million; (2) that the Company had inflated its earnings by improperly accounting for restructuring charges relating to acquisitions; (3) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal controls; and (5) that as a result, the Company's net income and financial results were materially overstated during the Class Period.

On the afternoon of April 20, 2005, defendants issued a press release announcing that the Company's financial statements for 2003 and most of 2004 should not be relied upon, and would have to be restated. In addition, defendants revealed that the Company expected a loss for 2005, and that the SEC is investigating the Company's accounting and internal controls. In response to this news, the stock dropped dramatically by more than 25%, on unusually high trading volumes.

Milberg Weiss Bershad & Schulman LLP (http://www.milbergweiss.com) is a firm with over 100 lawyers with offices in New York City, Los Angeles, Boca Raton, Delaware, Seattle and Washington, D.C. and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others for nearly 40 years. Please contact the Milberg Weiss website for more information about the firm.

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