Angry investors have filed in six separate complaints in the United States District Court for the Northern District of Illinois a lawsuit on behalf of a class consisting of all persons or entities who purchased the securities of Huron Consulting Group, Inc. (Nasdaq:HURN) between April 27, 2006 and July 31, 2009 against Huron Consulting and others alleging securities violations related to public statements made by the Huron Consulting concerning its financial performance for certain annual and quarterly periods between April 27, 2006 and July 31, 2009. The first class action lawsuit was filed on Tuesday, August 04, 2009.
Those who purchased Huron Consulting Group (Public, NASDAQ:HURN) between April 27, 2006 and July 31, 2009, have certain options and there are strict and short deadlines running. Deadline: October 05, 2009. Those investors and all other current long term investors in HRUN shares should contact the Shareholders Foundation, Inc at Email: mail(at)shareholdersfoundation.com or call us at: +1 (858) 779 - 1554. 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. According to the investor complaints the plaintiffs alleges that between April 27, 2006 and July 31, 2009 Huron Consulting Group and certain of its former executive officers violated federal securities laws by knowing or recklessly disregarding that their public statements concerning Huron Consulting’s business, operations and prospects were materially false and misleading.
Huron Consulting ironically is supposed to be that firm that helps clients avoid accounting pitfalls and remain on the right side of the law, but on July 31, 2009, Huron Consulting Group announced that its previously reported financial results for the fiscal years 2006, 2007 and 2008 and the first quarter of 2009 should no longer be relied upon. Huron Consulting announced late Friday that its financial statements for the fiscal years 2006, 2007, 2008, and the fiscal first quarter of 2009, will have to be restated as a result of its accounting for certain acquisition-related payments received by the sellers in connection with the sale of certain acquired businesses that were subsequently redistributed among themselves and to other select Huron employees, which under accounting rules should have been classified as non-cash compensation expenses. Huron also announced that CEO and Chairman Gary Holdren resigned, as well as CFO Gary Burge. In response to this news, so the complaint, on the next trading day, August 3, 2009, shares of Huron Consulting (NASDAQ:HURN) declined $30.66 per share, or 69.13%, to close at $13.69 per share, on unusually heavy trading volume.
Huron Consulting Group Inc., located in Chicago, IL , is an provider of operational and financial consulting services. Huron Consulting operates through four business segments: Health and Education Consulting, Accounting and Financial Consulting, Legal Consulting and Corporate Consulting. Huron Consulting Group reported in 2007 Total Revenue of $547.95million with a Net Income of $41.90million and in 2008 Total Revenue of $672.18million with a Net Income of $40.65million. Shares of Huron Consulting Group (Public, NASDAQ:HURN) traded recently at $44.35 per share, down from a 52weekHigh of $66.45 per share, $71.47 per share in 2008, and over $80 per share in 2007.