14.09.2008

United settles with SEC

United Rentals, the world’s largest rental company has reached a final settlement with the U.S. Securities and Exchange Commission (SEC) in the inquiry into suspect accounting practices between 2000 and 2002.

Under the terms of the settlement, which has been submitted for court approval, the company will pay a civil penalty of $14 million without admitting or denying the allegations in the SEC’s complaint. The company has already taken the $14 million charge in its first half results. The settlement brings the inquiry, which began in 2004, to a close for the company.

Michael Kneeland, United Rentals’ president and chief executive said: “We are very pleased to bring this matter to a conclusion for the company. The company has cooperated fully with the SEC throughout the commission’s review of our historical accounting practices. 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.”

The company has also agreed in principal to settle a class action suit filed by some shareholders after the announcement of the SEC inquiry. The settlement is likely to involve a cash payment of $27.5 million.
The company will continue to cooperate fully with the U.S. Attorney’s office inquiry that has led to charges against the company's former chief financial officer, Michael Nolan, and by its former vice chairman and chief acquisitions officer, John Milne.