DALLAS--(BUSINESS WIRE)--John DeGroote Services, LLC, as Liquidating Trustee to the BearingPoint, Inc. Liquidating Trust (“the BearingPoint Trustee”), announced today that the Circuit Court for Fairfax County, Virginia ordered that a lawsuit against BearingPoint, Inc.’s former Chief Executive Officer and a number of its former directors will proceed, denying the Defendants’ attempts to dismiss the 88-page Complaint.
At a hearing on May 11, 2012, Fairfax County Circuit Judge Jane Marum Roush denied all of the Defendants’ motions from the bench. The Court entered its written Order on May 26, 2012, ruling that the facts alleged in the Complaint state a claim for breach of fiduciary duty under Delaware law against all of the defendants and further ruling that the BearingPoint Trustee has standing to pursue the claims asserted in the Complaint.
The BearingPoint Trustee filed the Complaint in July 2011 against former BearingPoint, Inc. CEO F. Edwin Harbach and former directors Albert L. Lord, Roderick C. McGeary, J. Terry Strange, Douglas C. Allred, Betsy J. Bernard, Spencer C. Fleisher, Jill Kanin-Lovers, and Edward Munson. The Defendants sought to dismiss the Complaint by filing demurrers and pleas in bar, arguing that the BearingPoint Trustee had failed to state a claim under Delaware law, and that certain facts otherwise prevented the BearingPoint Trustee from recovering on the claims in the Complaint.
All pleadings filed by the Defendants and the BearingPoint Trustee, as well as the presentation made to the Court referencing various paragraphs in the Complaint, can be found at belawsuit.com/court-filings/. Pursuant to a Consent Scheduling Order previously entered, a jury trial is set in this matter for April 1, 2013, in Fairfax, Virginia.
Until its bankruptcy in early 2009, BearingPoint, Inc. was one of the largest businesses based in Northern Virginia, with over 3,700 employees in the Washington area and 8,400 employees nationwide.
For more information about the BearingPoint, Inc. Liquidating Trust and the BearingPoint Trustee’s lawsuit against BearingPoint, Inc.’s former CEO and certain of its directors, visit belawsuit.com. The allegations in the Complaint are in litigation and have not been determined by a judge or jury. The Defendant Directors and Officers dispute some or all of the allegations asserted by the BearingPoint Trustee, and deny any liability.