To All Shareholders of Huron Consulting Group (HURN):
Lawsuits have been filed against Huron Consulting in the Northern District of Illinois. The complaints allege that Huron and certain of its former officers with violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5.
In particular, the complaints allege that defendants made false or misleading statements because: (1) shareholders of four businesses that Huron acquired during 2005-2007 redistributed portions of their acquisition-related payments among themselves and to certain Huron employees and consequently Huron understated its non-cash compensation expenses; (2) the Huron's financial statements filed with the SEC did not comply with Generally Accepted Accounting Principles; and (3) Huron lacked adequate internal and financial controls.
As a result of defendants' false and misleading statements, Huron stock traded at artificially inflated prices, reaching a high of $83.25 per share on December 26, 2007. Then on July 31, 2009, Huron announced that it would be restating its financial results from 2006 through 2008 and the first three months of 2009 due to its failure to properly account for earn-out payments made in connection with four of its acquisitions. On this news, Huron's stock collapsed $30.66 per share to close at $13.69 per share on August 3, 2009, a 1-day decline of almost 70%.
In addition to the lawsuits by investors the U.S. Securities and Exchange Commission (“SEC”) recently announced that it is investigating accounting errors at Huron Consulting Group.
Shareholders of Huron Consulting should contact attorney Tony Kim for more information.
Contact Information:
Tony Kim
Tony@lawsds.com
T: (312)554-8403
F: (312)939-4661
