United Rentals Investors Settle In Stock Inflation Suit

United Rentals Investors Settle In Stock Inflation Suit - 4/20/2009

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HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

SETTLEMENT NEWS:

United Rentals Investors Settle In Stock Inflation Suit
Liz McKenzie

Securities Law 360. April 20, 2009
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EXCERPT: United Rentals Inc. shareholders have agreed to a deal in a securities class action accusing the company and its executives of artificially inflating stock prices, which plummeted after the U.S. Securities and Exchange Commission revealed it was investigating the company’s accounting methods. Shareholder plaintiffs filed the motion for settlement Friday in the U.S. District Court for the District of Connecticut, with final approval of the settlement and allocation of funds set to take place at a hearing on May 22. Lead plaintiff Barry Schimmel filed the lawsuit in September 2004 on behalf of investors who had purchased common stock from the company at allegedly inflated prices from Oct. 23, 2003, to Aug. 30, 2004. According to the complaint, URI violated SEC and Generally Accepted Accounting Principles and issued investors “materially false and misleading” financial statements that failed to disclose negative financial data. “These representations were false and misleading as to the financial information reported, as such financial information was not prepared in conformity with GAAP, nor was the financial information a ‘fair representation’ of United Rentals’ operations, causing the financial results to be presented in violation of GAAP and SEC rules,” the complaint said. The suit also claims that United Rentals and its executives knowingly falsified financial statements and actively hid negative information from investors. “Defendants acted with scienter in that defendants knew that the public documents and statements issued or disseminated in the name of the company were materially false and misleading; knew that such statements or documents would be issued or disseminated to the investing public; and knowingly and substantially participated or acquiesced in the issuance or dissemination of such statements or documents as primary violations of the federal securities laws,” the complaint said. The suit is one of many shareholder suits currently pending against United Rentals.

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