According to a press release dated August 05, 2009, the complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s financial results and compliance with Generally Accepted Accounting Principles. Specifically, the Company misaccounted for payments made as part of acquisitions. As a result of defendants’ false and misleading statements, Huron stock traded at artificially inflated prices during the Class Period, 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. As a result of the restatement, Huron expected to dramatically reduce its revenue reported for the period by 48% from $120 million on an aggregate basis to $63 million. The Company further announced that the SEC had commenced an inquiry into the Company’s allocation of chargeable hours related to its recognition of revenue. The SEC’s inquiry was unrelated to the acquisition accounting issue. Huron further withdrew its 2009 earnings guidance, lowered its 2009 revenue guidance and provided preliminary second-quarter revenue below analysts’ expectations. Finally, Huron announced that its chairman and Chief Executive Officer, its Chief Financial Officer and Chief Accounting Officer had all resigned. 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 more than 69%.
On November 16, 2010, a Notification Of Docket Entry was made by the Honorable Elaine E. Bucklo granted the plaintiff Public Pension Funds' motion for appointment as lead plaintiff and approval of their choice of lead counsel was granted. The Motion for consolidation was also granted.
On January 29, 2010, a Consolidated Class Action Complaint was filed by lead plaintiffs against the defendants.