United Rentals agreed to settle three class-action lawsuits for $27.5 million. The lawsuits were filed following an accounting probe by the Securities and Exchange Commission announced in 2004. The investigation is still ongoing, and in August, United Rentals said it planned to enter settlement talks with the SEC. The lawsuits were filed by investors who bought United Rentals securities from Feb. 28, 2001, to Aug. 30, 2004, according to the company.
United said the settlement will not have a material effect on operating or cash-flow results, and some of the settlement and defense costs are expected to be picked up by the company’s insurance carrier. United Rentals said it is not admitting liability or fault in the settlement.