United Rentals Inc. of Greenwich has reached a final settlement in the long-term accounting inquiry by the Securities and Exchange Commission.
The inquiry related to the company”™s accounting practices during 2002 and prior years, which were also the subject of an investigation by a special committee of the company”™s independent directors.
Under the terms of the settlement, which has been submitted for court approval, United Rentals consented, without admitting or denying the allegations in the SEC’s complaint, to the entry of a judgment requiring it to pay a civil penalty of $14 million.
“We are very pleased to bring this matter to a conclusion for the company,” said Michael Kneeland, president and CEO of United Rentals.
United Rentals previously recognized a charge of $14 million relating to the settlement of the matter in the second quarter of 2008. The settlement will have no effect on the company”™s third quarter operating results.
“The company has cooperated fully with the SEC throughout the commission”™s review of our historical accounting practices,” Kneeland said. “We have also made a number of important changes since the SEC inquiry began in 2004, including restructuring the company’s finance, treasury, internal audit and compliance functions, among many other positive steps.”
Separately, United Rentals has entered into a memorandum of understanding with the lead plaintiff’s counsel to settle the class action litigation that was filed following the initial announcement of the SEC inquiry in August 2004.
The contemplated settlement, which is subject to the prior satisfaction of a number of contingencies, provides that the claims of the plaintiff class will be settled for a cash payment of $27.5 million.
