BearingPoint, Inc. Director and Officer Litigation Settlement Announced
DALLAS, Mar 21, 2013 (BUSINESS WIRE) -- John DeGroote Services, LLC, as Liquidating Trustee to the BearingPoint, Inc. Liquidating Trust, announced today that the Trust settled its lawsuit against former Directors and the former Chief Executive Officer of BearingPoint, Inc. Under the settlement the Trust will receive $55 million, with no admission of liability and a release of claims by all parties.
"This settlement will generate a significant additional recovery for BearingPoint's creditors, and it culminates a multi-year effort to bring this litigation to resolution," said John DeGroote, President of John DeGroote Services, LLC. "If all goes as planned we'll be in a position to distribute the proceeds from this settlement, net of litigation expenses and other costs, by midsummer."
Three former directors of BearingPoint have agreed to dismiss a lawsuit they recently filed in Virginia against DeGroote. 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.
The Trust was represented in the Director and Officer action by Whiteford, Taylor & Preston L.L.P., led by Kevin Hroblak and William Ryan, and McKool Smith, P.C., led by Robert Manley and Lewis LeClair, and Christopher Nolland, who served as Special Settlement Counsel to the Trust.
The settlement agreement has been submitted for approval to the Honorable Robert E. Gerber of the United States Bankruptcy Court for the Southern District of New York.
SOURCE: John DeGroote Services, LLC