PHILADELPHIA, Aug. 7 /PRNewswire-USNewswire/ -- On August 7, 2009, the law firm of Berger & Montague, P.C. (http://www.bergermontague.com/ ) filed a class action suit against Huron Consulting Group, Inc. ("Huron" or the "Company") , and the Chairman of its Board of Directors, and PriceWaterhouse Coopers LLP ("PwC"), Huron's outside auditor, in the United States District Court for the Northern District of Illinois on behalf of all purchasers of Huron common stock from April 27, 2006 to July 31, 2009 (the "Class Period").
The Complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the SEC by issuing false financial statements and information in press releases, conference calls and SEC filings that, as the defendants have admitted, understated reported employee expense and overstated reported net income by $57 million. These materially false and misleading statements had the effect of artificially inflating the market price of the Company's stock throughout the Class Period.
On Friday, July 31, 2009, after the market closed, Huron issued a press release which disclosed that its reported income and earnings per share ("EPS") for 2006 through 2009 were materially overstated and that the Company's Chairman, CEO and CFO and Chief Accounting Officer were leaving the Company without severance. The expected restatement would reduce reported income by $57 million and EPS by $2.99, as follows:
Net Income Difference EPS (in millions) Restated Reported Restated Difference Reported 2006 27 23 4 $1.54 $1.32 ($0.22) 2007 42 24 18 $2.33 $1.35 ($0.98) 2008 41 10 31 $2.13 $0.53 ($1.60) 1Q09 10 6 4 $0.51 $0.32 $0.19 $120 $63 $57 $6.51 $3.52 $2.99
This announcement caused the price of Huron stock to fall 70%, from a closing price of $44.35 per share on Friday, July 31, 2009 to a closing price of $13.60 per share on August 3, 2009, a decline of $30.75 per share, on extraordinary volume of 31.7 million shares traded.
The $57 million overstatement was caused by the Company's accounting for payments made under "earn-out" provisions based on post-acquisition performance of four of the Company's post 2005 acquisitions, which were distributed by the sellers of the acquired companies to Huron employees based on their continued employment by Huron and performance as Huron employees. The Company admitted that under generally accepted accounting principles, this required Huron to account for these payments as employee expense, which are deducted from income, which the Company failed to do.
If you purchase Huron common stock during the period between April 27, 2006 and July 31, 2009 inclusive, you may, no later than 60 days from August 4, 2009, to move to be appointed as Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. If you have sustained substantial losses in Huron common stock during the Class Period, please contact Berger & Montague, P.C. for a more thorough explanation of the Lead Plaintiff selection process.
For more information about this case, please contact: Sherrie R. Savett, Esq. Carole A. Broderick, Esq. Eric Lechtzin, Esq. Kimberly A. Walker, Investor Relations Manager BERGER & MONTAGUE, P.C. 1622 Locust Street Philadelphia, PA 19103 Telephone: 1-888-891-2289 or 215-875-3000
Berger & Montague, founded in 1970, is a pioneer in class action litigation. The firm's approximately 60 attorneys concentrate their practice in complex litigation including securities fraud and corporate governance, antitrust, civil rights, consumer protection and environmental and mass torts, and have recovered billions of dollars for consumers and investors.
Berger & Montague, P.C.
CONTACT: Kimberly A. Walker, Investor Relations Manager, BERGER &
MONTAGUE, P.C., +1-888-891-2289 or +1-215-875-3000
Web Site: http://www.bergermontague.com/
