GREENWICH, Conn. — Three law firms recently announced participation in a class action lawsuit against the company. The law firm of Schatz & Nobel announced a lawsuit seeking class-action status has been filed in the United States District Court for the District of Connecticut on behalf of all persons who purchased the publicly traded securities of United Rentals between October 23, 2003, and August 30, 2004. Also included are all those who acquired United Rentals shares through its acquisition of Canadian aerial rental firm Skyreach Equipment.
The complaint alleges that United Rentals and certain of its officers and directors issued materially false statements, failing to disclose that the company, in an effort to generate a more favorable stock price and raise capital, manipulated its financial results through the use of restructuring charges, asset writedowns and debt refinancing. It also claims that United improperly delayed recognition of bad accounts receivable; and that, as a result, the company's announced financial results were in violation of Generally Accepted Accounting Principles.
The lawsuit was announced a few weeks after United's August 30 announcement that the SEC is conducting a non-public, fact-finding inquiry of certain accounting documents. United CEO Wayland Hicks said United is cooperating completely with the SEC inquiry, but would vigorously defend itself against the lawsuit.
