A $1.88 billion lawsuit against the directors of a Mclean-based consulting firm that went bankrupt has settled for $55 million, reports The VLW Blog.
After BearingPoint Inc. filed for bankruptcy, creditors quickly filed a lawsuit in Fairfax County Circuit Court claiming mismanagement against the directors of the company once the judge lifted restrictions that forced creditors to file claims in bankruptcy court.
Before bankruptcy in 2009, BearingPoint employed greater than 3,700 people in Northern Virginia and the Washington area. Creditors claim that CEO Edwin Harbach, along with eight former directors ignored several opportunities to sell parts of, or the whole company and therefore broke their fiduciary duties.
The court case involved almost 30 witnesses, 13 expert witness reports, and more than 6 million pages of documents. The $55 million settlement was reached in February after a few days of mediation.
An increase in corporate governance ligation is expected in Northern Virginia courts with the recession drawing to a close.
Parrish Law Firm, PLLC works with Northern Virginia residents who have been victims of corporate greed and are looking to receive fair compensation. James Parrish, the founding attorney, once worked for insurance companies before deciding to use his legal knowledge and experience to help his fellow citizens. Contact us today at 703-906-4229 or send us an email and tell us about your case.