The allegations below are paraphrased from those set forth in the Complaint filed on July 21, 2011:

In July 2007, BearingPoint, Inc. was one of the largest professional and IT consulting firms in the world, with an aggregate value of as much as $2.3 billion.  Nineteen months later, in February 2009, BearingPoint was bankrupt, and was later liquidated, yielding approximately $400 million in net proceeds.  The Complaint filed in this dispute seeks redress for the alleged breaches of fiduciary duty that caused this loss to the Company’s shareholders and creditors, and alleges specific instances where BearingPoint’s directors failed to develop, manage and oversee the Company’s sales process, instead allowing it to be dominated by a self-interested Chief Executive Officer who had a personal interest in ignoring significant segments of the marketplace in order to maintain his management position, vest certain equity interests, and obtain new equity holdings in the purchasing entity.  The Complaint further alleges that the failures of the directors were avoidable, and directly resulted in the decline of the Company’s value and inability to obtain the best price available for its assets, which the directors could have achieved by either selling the Company as a whole for a price in the approximate range of $1 billion to $1.4 billion or by selling the Company’s businesses for an aggregate price of $1.56 to $2.3 billion. The Complaint further alleges that, instead, the directors’ failures led to BearingPoint’s bankruptcy and liquidation of its business units and other assets, yielding net proceeds of approximately $400 million and resulting in losses of $627 million to $1.88 billion.

The Complaint alleges that, as members of the Board of Directors (the “Board”) of BearingPoint, Inc. (with its affiliates, “BearingPoint” or the “Company”), each of the Defendants had a fiduciary duty to actively prepare, determine, develop, and manage a strategy to pursue and maximize the highest value for the Company. Read More