Huron Consulting Group Inc. (HURN)

[MWM]

SEC investigation focuses on accounting at Huron Consulting Group

The Securities and Exchange Commission is investigating accounting errors at Huron Consulting Group that is forcing the Chicago firm to restate more than three years of earnings.

"The company intends to cooperate with the SEC in its investigation," Huron said Tuesday in an SEC filing.

At the end of July, Huron announced it was restating earnings for 2006, 2007, 2008 and the first quarter of 2009 because of incorrect accounting related to the acquisition of four businesses. Chief Executive Gary Holdren, Chief Financial Officer Gary Burge and Chief Accounting Officer Wayne Lipski resigned from the company.

Huron said some employees of the acquired businesses who were not selling shareholders received payments. Huron had accounted for these payments as goodwill, instead of as non-cash compensation expense. As a result, net profit during the three years and one quarter dropped from $120 million to $63 million.

Huron also confirmed Tuesday that six shareholder class-action lawsuits have been filed against the company in U.S. District Court for the Northern District of Illinois.


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