WASHINGTON--(BUSINESS WIRE)--Attn: All persons or entities who purchased and/or acquired United Rentals, Inc. securities: Common Stock, Notes and Options between February 28, 2001 – August 30, 2004, inclusive.
In September 2008, the Securities and Exchanges Commission (the “SEC”) filed a complaint against United Rentals, Inc. (“URI”) alleging that, from late 2000 through 2002, URI engaged in a series of fraudulent transactions undertaken in order to meet its earnings forecasts and analyst expectations. The fraud was accomplished primarily through a series of interlocking three-party sale-leaseback transactions in which URI sold used equipment to a financing company, leased it back for a short period of time, and then engaged a third party equipment manufacturer to agree to sell the equipment at the end of the lease period while guaranteeing the financing company against any losses incurred in the resale of the equipment. Simultaneously, URI separately guaranteed the equipment manufacturer against any losses it might incur under the guarantee it had extended to the financing company. The SEC's complaint further alleges that during this time URI was also selling blocks of used equipment above fair value, in exchange for certain undisclosed financial inducements offered to suppliers.
The complaint also alleged that from 1997 to 2000, URI engaged in other improper accounting practices including its valuations of acquired assets, use of acquisition reserves, and accounting for customer relationships that overstated its net income.
Without admitting or denying the charges, URI has agreed to settle the SEC's enforcement action and pay a $14 million penalty. URI's then-Chief Financial Officer, Michael Nolan, and its then-Chief Acquisitions Officer, John Milne, were previously charged by the SEC for individual wrongdoing. In addition to the financial penalty, URI consented to be permanently enjoined from violating Section 17(a) of the Securities Act of 1933, Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934, and Rules 10b-5, 12b-20, 13a-1, 13a-11 and 13a-13, thereunder. The penalty incurred by URI and its former officers will be made available for distribution to harmed investors who submit a completed and timely claim form.
The Court has appointed Gilardi and Co. LLC as the Distribution Agent to distribute funds to United Rentals investors who qualify under a Court-approved damage plan.
How to Participate
If you submitted a valid Proof of Claim in connection with the In re United Rentals, Inc. Securities Litigation, you do not need to take any further action to participate in this Fair Fund. If you are not sure if you have previously filed a claim in this litigation, you can send an inquiry to classact@gilardi.com. Please include your full name, your address and your social security or tax identification number with your inquiry.
If you did not file a claim in the Securities Litigation, you must submit a completed Proof of Claim form no later than March 31, 2011, to the Distribution Agent at the address listed below:
SEC v. United Rentals, Inc. Fair Fund
c/o Gilardi & Co. LLC
P.O.
Box 8040
San Rafael, CA 94912-8040
Questions?
- Visit the case website at www.gilardi.com/URIFairFund or
- Call the dedicated toll free number 877-246-8761 or
- Send an email inquiry to classact@gilardi.com