The Huron Consulting Group (“Huron” or “Company”), global management consulting company offering services in the Healthcare, Education, Law, and Finance industries was formed in 2002, by a core group of experienced financial and operational consultants, with equity sponsorship from a group of investors led by Lake Capital Management LLC. Its headquarters is situated in Chicago, Illinois and listed on the NASDAQ Stock Market. For the financial year ending 31 December 2012, Huron recorded revenue of US$626.0 million and currently employs 2,283 full-time employees, including 1,417 full-time billable consultants.
On 31 July 2009, Huron made an announcement to reinstate their financial statements for the fiscal years 2006, 2007 and 2008 and Q1 2009, to correct the Company’s accounting for certain acquisition-related payments received by the sellers in connection with the sale of certain acquired businesses that were subsequently redistributed among themselves and to other select Huron employees. As a result, the Audit Committee of Huron was in the opinion that the historical financial statements for these periods are no longer reliable. The restatement items are non-cash charges with an impact on net income and earnings before interest, tax, depreciation and amortisation (“EBITDA”) for all restated periods, amounted to US$57 million.
On the same day, Huron also announces the change in management, whereby its Chairman and Chief Executive Officer (“CEO”), Gary Holdren, Chief Financial Officer (“CFO”), Gary Burge and Chief Accounting Officer (“CAO”), Wayne Lipski resigned. Holdren will be replaced by James Roth as CEO and by George Massaro as chairman, while James Rojas will become the company 's new CFO.
On 3 August 2009, Huron’s shares sank $30.66, or 69 percent, to
References: (Accessed on 15 April 2013) Zieminski, N., 2009, In Huron scandal, shadows of Arthur Andersen (Online) Available at: http://www.reuters.com/article/2009/08/03/us-huron-andersen-idUSTRE57262D20090803 (Accessed on 15 April 2013) Singh S., 2009, SEC investigating Huron for accounting errors, (Online) Available at: http://www.reuters.com/article/2009/08/11/us-huron-idUSTRE57A33K20090811 (Accessed on 15 April 2013) SEC, 2012, SEC Charges Chicago-Based Consulting Firm and Executives With Accounting Violations, (Online) Available at: http://www.sec.gov/news/press/2012/2012-142.htm (Accessed on 15 April 2013) Zieminski, N., 2009, In Huron scandal, shadows of Arthur Andersen, (Online) Available at: http://www.reuters.com/article/2009/08/03/us-huron-andersen-idUSTRE57262D20090803 (Accessed on 15 April 2013) Unknown, 2009, Shocking Accounting Scandal at Huron Consulting Group, (Online) Available at: http://www.big4.com/andersen/shocking-accounting-scandal-at-huron-consulting-group-370/ (Accessed on 15 April 2013) Velasquez M. G., 2002, Business Ethics Concepts and Cases, 5th edition, New Jersey, Prentice Hall