Huron settles lawsuit for $38M, takes Q4 charge

By Reuters
Posted Dec. 6, 2010 at 5:03 p.m.

Huron Consulting Group said it agreed to settle a securities lawsuit for $38 million and expects to take a related non-cash charge of about $11 million in the fourth quarter.

The proposed settlement with the lead complainant does not contain any of admission of wrongdoing, the company said.

The class action lawsuit relates to Huron’s restatement in 2009.

Huron, which competes with companies like FTI Consulting and Navigant Consulting, was in the news last July for a major accounting scandal, forcing its top management to quit the firm.

Huron also had to restate earnings of past years because of misreported costs related to acquisitions.

The settlement includes $27 million in cash to be funded by Huron’s insurance carriers and the issuance of 474,547 Huron common shares worth about $11 million.

Huron, founded by two-dozen partners from the collapsed accounting firm Arthur Andersen in 2002, will issue the shares following court approvals, which it expects in the first half of 2011.

Shares of the Chicago-based company closed up 7 percent at $25.66 on Monday on Nasdaq.

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