ENGLEWOOD CLIFFS, N.J., Aug. 17, 2009 (GLOBE NEWSWIRE) -- Gardy & Notis, LLP has filed a securities fraud class action lawsuit on behalf of all investors who purchased or otherwise acquired Huron Consulting Group, Inc. (Nasdaq:HURN) common stock during a class period of April 27, 2006 to and including July 31, 2009. The lawsuit was filed in the United States District Court for the Northern District of Illinois and charges defendants Huron, Gary E. Holdren (CEO), Gary L. Burge (CFO) and Wayne Lipski (CAO) with issuing a series of materially false and misleading statements in violation of Section 10(b) and 20(a) of the Securities Exchange Act and SEC Rule 10b-5.
The complaint alleges that defendants failed to disclose: (1) that shareholders of four businesses that Huron acquired between 2005-2007 redistributed portions of their acquisition-related payments among themselves and to certain Huron employees; (2) that, as a result, Huron understated its non-cash compensation expenses; (3) that Huron's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) that Huron lacked adequate internal and financial controls; and (5) as a result of the above, Huron's financial statements were materially false and misleading at all relevant times.
On July 31, 2009, Huron shocked investors when it revealed that its financial statements for the fiscal years 2006, 2007, 2008, and the fiscal first quarter of 2009, should no longer be relied upon and will have to be restated as a result of its accounting for certain acquisition-related payments. Huron further disclosed that, as a result, aggregate net profit for the period dropped to just $63 million from $120 million. As a result of this news, shares of Huron declined $30.66 per share, or 69.13%, to close on August 3, 2009, at $13.69 per share.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased Huron securities between April 27, 2006 and July 31, 2009, excluding defendants and their affiliates. Plaintiff is represented by Gardy & Notis, LLP, a law firm with extensive experience in prosecuting class actions and actions involving corporate fraud.
If you purchased Huron common stock during the Class Period, you may, not later than October 5, 2009, move the court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation, and you must meet certain legal requirements to serve as a lead plaintiff.
For more information regarding the lawsuit, or to obtain a copy of the complaint, please contact plaintiff's counsel, Charles A. Germershausen at Gardy & Notis, LLP, by telephone at 201-567-7377 or email to cgermershausen@gardylaw.com.