CHICAGO--(BUSINESS WIRE)--Jul. 19, 2012--
Huron Consulting Group Inc. (NASDAQ: HURN), a leading provider of
business consulting services, today announced it has reached a final
settlement with the U.S. Securities and Exchange Commission (SEC)
resolving the previously disclosed SEC investigation into the Company’s
August 2009 restatement of its financial statements for the years ended
2006, 2007 and 2008 and the first quarter of 2009.
In an administrative proceeding, the SEC found that the Company had
violated the reporting, books and records, and internal controls
provisions of the Securities Exchange Act of 1934 during the restatement
period and ordered the Company to cease and desist from committing or
causing any violations and any future violations of such SEC rules. The
Company agreed to the settlement without admitting or denying the SEC’s
factual findings. The SEC also imposed a monetary penalty of $1 million
on the Company. In the fourth quarter of 2011, the Company established a
reserve in that amount for the potential settlement of this matter.
In connection with the settlement, the SEC considered remedial acts
promptly undertaken by the Company and the Company’s cooperation with
the SEC staff during the course of the investigation. Among other
things, the Company self-investigated and self-reported the accounting
errors, selected new management and implemented various additional
controls designed to prevent similar errors going forward.
In the same administrative proceeding, the SEC also reached settlements
with two former employees of the Company. The Company is obligated to
indemnify its former employees for their defense costs in connection
with this matter, but is not obligated to reimburse them for the
monetary penalties imposed on them by the SEC in connection with the
settlements.
“We believe the agreement is in the best interest of the Company and we
are gratified to have reached a resolution of these issues,” said John
McCartney, chairman of the Board of Directors, Huron Consulting Group
Inc. “Since we announced the restatement in July 2009, the Company has
remained focused on its clients and its people under the stewardship of
CEO Jim Roth, who has led Huron since that time.”
About Huron Consulting Group
Huron Consulting Group helps clients in diverse industries improve
performance, comply with complex regulations, reduce costs, recover from
distress, leverage technology, and stimulate growth. The Company teams
with its clients to deliver sustainable and measurable results. Huron
provides services to a wide variety of both financially sound and
distressed organizations, including healthcare organizations, Fortune
500 companies, leading academic institutions, medium-sized businesses,
and the law firms that represent these various organizations. Learn more
at www.huronconsultinggroup.com.
Statements in this press release that are not historical in nature,
including those concerning the Company’s current expectations with
respect to its indemnification obligations to its former employees with
respect to the restatement, are “forward-looking” statements as defined
in Section 21E of the Securities Exchange Act of 1934, as amended, and
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are identified by words such as “expect”. Risks,
uncertainties and assumptions that could impact the Company’s
forward-looking statements relate, among other things, to the Securities
and Exchange Commission investigation with respect to the restatement.
These statements involve known and unknown risks, uncertainties and
other factors that may cause actual results to be materially different
from any anticipated results expressed or implied by these
forward-looking statements.
Source: Huron Consulting Group Inc.
Huron Consulting Group Inc.
Media Contact:
Jennifer
Frost Hennagir
312-880-3260
jfrost-hennagir@huronconsultinggroup.com
or
Investor
Contact:
C. Mark Hussey
or
Ellen Wong
312-583-8722
investor@huronconsultinggroup.com
