Massive Price/Volume Alert: Huron Consulting (HURN)

Posted in pre-market 
August 3rd, 2009

Huron Consulting Group Inc. (NASDAQ: HURN) is getting destroyed as the worst pre-market stock.    UPDATE at 8:25 AM EST: almost 800,000 shares have traded hands and shares are down a sharp 69% at $13.70… this will be an exponential volume mover even by the open.

We have only seen 25,000 shares trade hands as of 7:57 AM EST. But that will be a fraction of what we see later. If pre-market indications are accurate, this is down at $16.00 after closing at $44.35 on Friday. Average volume is about 280,000 shares.

The firm is restating financial statements for the fiscal years 2006, 2007 and 2008 and Q1 2009. The restatement pertain to non-cash charges relating to how payments received by the sellers of certain acquired businesses were subsequently redistributed among themselves and to other select Huron employees. Total estimated impact on net income and EBITDA for all restated periods of $57 million and has no impact on cash, cash flows from operations or adjusted EBITDA. It also appears as though the CEO and CFO are being replaced. We have also seen at least 3 downgrades.

Jon C. Ogg
August 3, 2009

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