maintained by John DeGroote Services, LLC, Trustee

 

Case Updates

Case Update – June 27, 2013

July 1st, 2013 - Case Updates

In accordance with the Settlement Agreement and following receipt by the BearingPoint, Inc. Liquidating Trust of the agreed-upon $55,000,000, an Order of Dismissal was signed by the Circuit Court for the County of Fairfax, Virginia, dismissing the Complaint filed by John DeGroote Services, LLC against F. Edwin Harbach, Albert L. Lord, Roderick C. McGeary, J. Terry Strange, Douglas C. Allred, Betsy J. Bernard, Spencer C. Fleischer, Jill Kanin-Lovers and Edward Munson.  A Notice of Dismissal was also filed by F. Edwin Harbach, Roderick C. McGeary, and Edward Munson to dismiss the Adversary Proceeding against John DeGroote in the United States Bankruptcy Court for the Southern District of New York, while John DeGroote similarly filed a Notice withdrawing those portions of his Motion for an Order (A) Enforcing Confirmation Order, (B) Holding F. Edwin Harback, Roderick C. McGeary, and Eddie R. Munson in Contempt, and (C) Imposing Sanctions for Willful Violation of Confirmation Injunction that remain pending in that same Court.

Case Update – April 17, 2013

April 17th, 2013 - Case Updates

Order to Approve Settlement Entered

Today the United States Bankruptcy Court for the Southern District of New York granted the Motion for Entry of an Order Approving Settlement, filed on March 21, 2013, entering an Order approving the proposed settlement. Under the settlement the Trust will receive $55,000,000, with no admission of liability, and a release of claims, by all parties.

Case Update – March 21, 2013

March 21st, 2013 - Case Updates

Motion to Approve Settlement Filed

Today John DeGroote Services, LLC filed with the United States Bankruptcy Court for the Southern District of New York a Motion for Entry of an Order Approving Settlement Between the Liquidating Trust and F. Edwin Harbach, Albert L. Lord, Roderick C. McGeary, J. Terry Strange, Douglas C. Allred, Betsy J. Bernard, Spencer C. Fleischer, Jill Kanin-Lovers and Edward Munson and Authorizing Settlement Payment.  Under the settlement the Trust will receive $55,000,000, with no admission of liability, and a release of claims, by all parties. Three former directors of BearingPoint have agreed to dismiss a lawsuit they recently filed in Virginia against John DeGroote, and DeGroote has agreed to dismiss his request to the New York Bankruptcy Court to hold the three former directors in contempt and impose sanctions for violating a court order by filing the lawsuit against him in Virginia.

Case Update – February 12, 2013

February 13th, 2013 - Case Updates

On February 8, 2013, the Defendants filed a Motion for Summary Judgment along with Briefs in Support of the Motion.  The Memo in Support of Defendant Harbach’s Motion is available here.  The Brief in Support of the Director Defendants’ Motion is available here, as well as an Index of associated shared Exhibits.   Plaintiff’s response is due on March 8, 2013.

A pre-trial conference is scheduled for Thursday, February 14, 2013, during which time the Hearing on the Motion for Summary Judgment will be scheduled.

Case Update – February 7, 2013

February 8th, 2013 - Case Updates

The hearing before the United States Bankruptcy Court for the Southern District of New York on the Motion for an Order (A) Enforcing Confirmation Order, (B) Holding F. Edwin Harbach, Roderick C. McGeary, and Eddie R. Munson in Contempt, and (C) Imposing Sanctions for Willful Violation of Confirmation Injunction (see prior update) took place on January 31, 2013, and a transcript of the hearing can be found here.

On February 7, 2013, the Court entered an Order finding that:

1.         The Confirmation Order is binding on the Former Directors; and

2.         The Former Directors filed a lawsuit against John DeGroote on November 15, 20[12], in the Circuit Court of Fairfax County, Virginia, (the “New Virginia Lawsuit”) in violation of the exclusive jurisdiction provision contained in 34(c) of the Confirmation Order and the doctrine arising from Barton v. Barbour, 104 U.S. 126 (1881).

The Court further ordered that:

A)        The Former Directors are enjoined from prosecuting or continuing the claims brought in the New Virginia Lawsuit in any forum other than that of the Honorable Robert E. Gerber of the United States Bankruptcy Court for the Southern District of New York;

B)        The Former Directors shall, within 10 business days of the date of the Order, voluntarily dismiss the New Virginia Lawsuit without prejudice or move to transfer it to the Court of the Honorable Robert E. Gerber of the United States Bankruptcy Court for the Southern District of New York and, both during and after such 10 business day period, exercise reasonable diligence to pursue approval of such motion to transfer; and

C)        The requests for a finding of contempt and imposition of sanctions contained in the Motion shall be continued sine die pending an evidentiary hearing on those issues if they are not by then moot.

(Update:  A Consent Order transferring the New Virginia Lawsuit to the United States Bankruptcy Court for the Southern District of New York was entered on February 22, 2013.)

Case Update – January 23, 2013

January 23rd, 2013 - Case Updates

The hearing with the United States Bankruptcy Court for the Southern District of New York originally scheduled for January 28, 2013 on the Motion for an Order (A) Enforcing Confirmation Order, (B) Holding F. Edwin Harbach, Roderick C. McGeary, and Eddie R. Munson in Contempt, and (C) Imposing Sanctions for Willful Violation of Confirmation Injunction has been rescheduled.  The hearing will now be on Thursday, January 31, 2013 at 9:45am.

 

 

Case Update – December 22, 2012

December 22nd, 2012 - Case Updates

On November 15, 2012, Defendants F. Edwin Harbach, Roderick McGeary, and Eddie R. Munson (the “Former Directors”) filed a separate Complaint (the “New Virginia Complaint”) against John DeGroote in his individual capacity in the Circuit Court of Fairfax County, Virginia.  The New Virginia Complaint filed against DeGroote, who serves as Liquidating Trustee of the BearingPoint, Inc. Liquidating Trust through John DeGroote Services, LLC, alleges that DeGroote served as personal counsel to Harbach, McGeary and Munson while DeGroote served as the Chief Legal Officer of BearingPoint, Inc. in late 2009, and that his actions have damaged the Former Directors as claimed in the New Virginia Complaint.  Subsequently, on November 28, 2012, the Former Directors filed Defendants’ Motion to Consolidate and Defendants’ Supporting Memorandum in Support of Motion to Consolidate in the current case seeking to consolidate the New Virginia Complaint with the Trustee’s complaint against BearingPoint, Inc.’s former Chief Executive Officer and the Director Defendants.

In response to the New Virginia Complaint against him individually, DeGroote filed a Motion for an Order (A) Enforcing Confirmation Order, (B) Holding F. Edwin Harbach, Roderick C. McGeary, and Eddie R. Munson in Contempt, and (C) Imposing Sanctions for Willful Violation of Confirmation Injunction with the United States Bankruptcy Court for the Southern District of New York.  A hearing on that motion is set for January 28, 2013.   Mr. DeGroote also filed a Notice of Removal from the Circuit Court for Fairfax County removing the New Virginia Complaint from State Court to the Alexandria Division of the United States District Court for the Eastern District of Virginia, and a Suggestion of Lack of Jurisdiction, etc., on December 13, 2012, noting the removal of the case, but including a Motion Craving Oyer in the event the New Virginia Complaint is ultimately remanded back to State Court.  In addition, on December 21, 2012, John DeGroote Services, LLC, as Liquidating Trustee to the BearingPoint, Inc. Liquidating Trust, filed BearingPoint, Inc. Liquidating Trustee’s Motion and Joinder to Motion to Enforce the Plan Injunction.

Update:On January 14, 2013, F. Edwin Harbach, Roderick C. McGeary, and Eddie R. Munson filed a Joint Opposition to the Motion of John DeGroote for an Order Enforcing the Confirmation Order, along with a Declaration incorporating several Exhibits for that Joint Opposition.

 

Case Update – November 9, 2012

December 7th, 2012 - Case Updates

Following a hearing at the Fairfax County Circuit Court, an Order was granted compelling the deposition of Roderick McGeary, the former Chairman of the Board of Directors of BearingPoint, Inc., on or prior to November 26, 2012. The hearing was set after Plaintiffs filed a Motion to compel the deposition based on scheduling disagreements.  Counsel for Mr. McGeary submitted an Opposition to the Motion to Compel prior to the hearing.   Per the Scheduling Order issued February 15, 2012, all fact discovery, to include depositions, is to be completed by November 30, 2012.

 

Case Update – September 25, 2012

September 26th, 2012 - Case Updates

Fact discovery is underway.   In accordance with the Scheduling Order issued on February 15, 2012, all fact discovery, to include depositions, must be complete on or before November 30, 2012.   Additional deadlines prior to the beginning of the trial scheduled for April 1, 2013, may be found in the Scheduling Order.

Case Update – June 11, 2012

June 18th, 2012 - Case Updates

On June 11, 2012, the Defendants filed Answers and Defenses with the Court. Defendant Harbach’s Answer and Affirmative Defenses and the Former Outside Director Defendants’ Answers and Defenses are also posted under Court Filings.

Case Update – May 29, 2012

May 29th, 2012 - Case Updates

On May 26, 2012, Judge Jane Marum Roush of the Circuit Court for the County of Fairfax entered an Order denying the Defendants’ Demurrers and Pleas in Bar, as well as Defendant Harbach’s Motion Craving Oyer. The Order also states that the Defendants shall file and serve their Answer and Grounds of Defense in response to the Complaint on or before June 11, 2012. This Order resulted from arguments heard at the Hearing conducted on May 11, 2012, during which counsel for the Trustee used this PowerPoint presentation, referencing paragraphs in the Complaint filed on July 21, 2011.

Case Update – March 30, 2012

April 3rd, 2012 - Case Updates

Today’s hearing on the Demurrers and Pleas in Bar has been rescheduled to May 11, 2012.

Case Update – February 15, 2012

April 3rd, 2012 - Case Updates

The Court has issued a Scheduling Order establishing the trial date as April 1, 2013, with a jury.  The length of the trial is estimated to be four weeks.  All parties shall complete fact discovery by November 30, 2012, and expert designations and reports are due on December 14, 2012, with responsive expert reports due on January 15, 2013.  All expert depositions will be complete by February 28, 2013.

Case Update – January 20, 2012

January 24th, 2012 - Case Updates

Today the Plaintiffs filed oppositions to the Defendants’ motions filed on November 21, 2012. The filings include an Opposition to the Director Defendants’ Demurrer and Plea in Bar, as well as briefs opposing Defendant Harbach’s Demurrer and Plea in Bar, and opposing the  Motion Craving Oyer.   The Demurrers and Pleas in Bar are scheduled to be heard in Court on March 30, 2012.

Case Update – November 28, 2011

November 29th, 2011 - Case Updates

On November 21, 2011, the Director Defendants filed a Demurrer and Plea in Bar along with a supporting memo, objecting to all counts of the Complaint filed by the Liquidating Trustee against them.   Defendant Harbach also filed a Demurrer and Plea in Bar, with supporting brief, requesting that the Court dismiss the Complaint.   Defendant Harbach simultaneously filed a Motion Craving Oyer, requesting that the Court incorporate certain documents into the Complaint as Exhibits and to consider them in conjunction with its eventual ruling on the Demurrer and Plea in Bar.

Case Update – November 3, 2011

November 9th, 2011 - Case Updates

Following a hearing on October 28, 2011, the US District Court for the Eastern District of Virginia issued an Order on November 3, 2011, granting the plaintiff’s motion to remand, and denying the Defendant’s motion to transfer.

Case Update – October 12, 2011

October 12th, 2011 - Case Updates

The Liquidating Trustee filed a Response to the Defendant’s memorandum supporting their request to dismiss the case.

Case Update – October 11, 2011

October 11th, 2011 - Case Updates

This Order granted the modification of the case briefing schedule on the Defendants’ Motion to dismiss and the Plaintiff’s Motion to remand.

Case Update – October 6, 2011

October 6th, 2011 - Case Updates

The Defendants filed a Memorandum supporting their request to dismiss the case, and opposing the Liquidating Trustee’s motion to remand the case back to Fairfax County Circuit Court.

Case Update – September 20, 2011

September 20th, 2011 - Case Updates

The Liquidating Trustee filed a Motion to remand the case back to Fairfax County Circuit Court, along with this Memorandum that supported the remand request, and opposed the Defendants’ Motion to dismiss the complaint, or to transfer it to Delaware.  The Liquidating Trustee also filed this Affidavit to assert the facts presented in the accompanying motion.

Case Update – September 9, 2011

September 9th, 2011 - Case Updates

The Defendants filed this unopposed Motion for an extension of time to file pleadings or motions in the lawsuit filed by the Liquidating Trustee in Fairfax County Circuit Court.

Case Update – September 7, 2011

September 7th, 2011 - Case Updates

The Defendants filed this Notice to remove the case from Fairfax County Circuit Court to the U.S. District Court for the Eastern District of Virginia, along with a Motion to dismiss the Complaint, or in the alternative, to transfer it to Delaware.   Also filed was this Memorandum in support of  that Motion.

Case Update – July 21, 2011

July 21st, 2011 - Case Updates

The Liquidating Trustee filed this Complaint against the former CEO and former Board of Directors members in the Circuit Court for the County of Fairfax, Virginia.

Case Update – July 19, 2011

July 19th, 2011 - Case Updates

The U.S. Bankruptcy Court for the Southern District of New York issued this Order granting the Liquidating Trutsee’s Motion for Relief from the Plan.

Case Update – July 11, 2011

July 11th, 2011 - Case Updates

The U.S. Bankruptcy Court for the Southern District of New York issued a written decision that granted the Liquidating Trutsee’s Motion for Relief from the Plan.

Case Update – January 4, 2011

January 4th, 2011 - Case Updates

The Defendants filed a Response opposing the motion to allow the Liquidating Trustee to file suit against CEO F. Edwin Harbach and the former Board of Directors in the Commonwealth of Virginia.

Case Update – November 29, 2010

November 29th, 2010 - Case Updates

The Liquidating Trustee of the BearingPoint, Inc. Liquidating Trust filed a request with the U.S. Bankruptcy Court for the Southern District of New York for relief from the Plan that created the Trust. This relief was requested in two separate motions as a precursor to filing individual lawsuits against former BearingPoint Inc. CEO F. Edwin Harbach and the company’s former Board of Directors in the Commonwealth of Virginia.