Summary
United Rentals, Inc. (URI) has filed an 8-K report detailing a final settlement with the Securities and Exchange Commission (SEC) regarding a previously announced inquiry. The settlement, submitted for court approval, involves the company consenting, without admitting or denying allegations, to a civil penalty of $14 million and disgorgement of one dollar. The company will also be enjoined from future violations of certain federal securities laws. Importantly for investors, the company had already recognized a $14 million charge related to this SEC inquiry in the second quarter of 2008. Therefore, this final settlement will have no impact on the company's third quarter operating results. This filing provides closure on a significant legal matter and clarifies its financial implications for the current period.
Key Highlights
- 1United Rentals reached a final settlement with the SEC on September 8, 2008.
- 2The settlement requires a $14 million civil penalty and $1 in disgorgement.
- 3The company neither admits nor denies the SEC's allegations.
- 4United Rentals will be enjoined from future violations of certain federal securities laws.
- 5A $14 million charge for this settlement was already recognized in Q2 2008.
- 6The settlement will have no impact on Q3 2008 operating results.