COLCHESTER, Conn., Nov. 12, 2004 (PRIMEZONE) -- Scott + Scott, LLC (UnitedRentalsLitigation@scott-scott.com or nrothstein@scott-scott.com) a law firm based in Connecticut with offices in Ohio and California (http://www.scott-scott.com ), announces that it has filed a complaint in the United States District Court for the District of Connecticut on behalf of all purchasers of securities from October 23, 2003 to August 30, 2004 (the "Class Period") inclusive against Greenwich, Connecticut based United Rentals, Inc. ("United Rentals") (NYSE:URI). The company states that it is the number one equipment renter in North America, serving approximately 1.9 million commercial and industrial customers. From more than 730 locations in Canada, Mexico, and 47 states in the US, the company rents approximately 600 different equipment items.
The complaint alleges that, throughout the Class Period, certain officers and directors issued numerous positive statements concerning the Company's financial performance. These statements were materially false and misleading because defendants knew, but failed to disclose, that the Company, in an effort to generate a more favorable stock price and raise capital, manipulated its financial results through the use of restructuring charges, asset write-downs and debt refinancing. Further, the complaint alleges that the Company improperly delayed recognition of bad accounts receivable and that as a result of these manipulations, the Company's announced financial results were in violation of Generally Accepted Accounting Principles ("GAAP"). Finally, the complaint charges that during the relevant time periods the Company's financial results were materially inflated. It is alleged that this conduct violated the Securities Exchange Act of 1934
On August 30, 2004, United Rentals announced that it had received notice that the Securities and Exchange Commission ("SEC") was conducting a non-public, fact-finding inquiry into the Company. The SEC notice was accompanied by a subpoena requesting the Company to produce documents relating its accounting practices. United Rentals stated it "intends to cooperate fully with the SEC." News of the SEC inquiry shocked the stock market causing United Rental share to fall 21.53 %, to close at $16 per share on August 30, 2004 on unusually heavy trading volume. On November 9, 2004, United Rentals announced in its Form 10-Q, among other things, that it was no longer permitted to amortize goodwill of the Company as previously done, that it would incur a non-cash impairment charge of approximately $139.3 to write off the remaining goodwill, that it would sustain $172.2 million related to debt refinancings that were completed in 2004 and that $7.0 million was related to the vesting of restricted stock granted to executives in 2001. The company posted a third-quarter loss of $64.4 million, or 83 cents per share, substantially below last year's earnings of $31.9 million, or 34 cents per share.
Scott + Scott, LLC, a Connecticut-based law firm with offices in Ohio and California, is a law firm with a national practice and reputation. Scott + Scott dedicates itself to client communication and satisfaction. The firm is currently litigating major securities, antitrust, insurance and employee retirement plan cases throughout the United States and represents pension funds, charities, foundations, individuals and other entities worldwide -- in both class and non-class cases. Please visit our website at http://www.scott-scott.com to learn more about the firm, its practice and its cases. Scott + Scott, LLC is currently involved in cases against Merck & Co., Marsh & McKlennen Corp., Hartford Financial, Star Gas and more.
If you wish to discuss this lawsuit or any other lawsuit with an attorney or have questions concerning this notice, your rights, please contact attorney Neil Rothstein at nrothstein@scott-scott.com or by calling 800-404-7770 (EDT) or 800-332-2259 (PDT). You can dial direct in California at 619-233-4565. Scott + Scott, LLC is located at 108 Norwich Avenue, Colchester, CT 06415; phone: 860-537-3818; fax: 860-537-4432.
This release is issued in accordance with the applicable federal law of the United States.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.