| Company: | United Rentals, Inc. |
| Ticker Symbol: | NYSE: URI |
| Class Period: | August 29, 2007 to November 14, 2007 |
| Date Filed: | Nov-20-07 |
| Lead Plaintiff Deadline: | Jan-19-08 |
| Court: | District, CT |
| Allegations: |
A class action lawsuit has commenced in the United States District Court for the District of Connecticut on behalf of a class (the "Class") of all persons who purchased or acquired securities of United Rentals, Inc. ("URI" or the "Company") between August 29, 2007 through and including November 14, 2007 inclusive (the "Class Period").
On July 23, 2007, URI announced that it had entered into a definitive merger agreement (the "Merger Agreement") under which affiliates of Cerberus Capital Management, L.P. ("Cerberus") would acquire all of the outstanding shares of URI common stock for $34.50 per share (the "Merger"). On September 19, 2007, URI filed its Schedule 14A Proxy Statement (the "Proxy") with the Securities and Exchange Commission ("SEC") in anticipation of the shareholder vote to approve the Merger. On October 19, 2007, URI announced that its stockholders approved the Merger Agreement. On November 14, 2007, URI publicly announced that Cerberus had informed the Company that Cerberus was not prepared to proceed with the purchase of URI on the terms set forth in the Merger Agreement.
On the news that Cerberus was backing out of the Merger, the Company posted its biggest drop since it went public in 1997 and plunged 31%, or $10.51, from $34.01 per share to a closing price of $23.50 per share.
The Complaint alleges that the defendants violated the federal securities laws by failing to disclose that, several weeks after the Merger Agreement was signed, Cerberus contacted URI management and expressed its concern about its ability to proceed with the Merger given the changes in the credit and financial markets, on which its financing for the deal depended. It was not until November 14, 2007, when the Company filed a Form 8-K that included letters, dated August 31, 2007 and September 6, 2007 which demonstrated that the Merger had been at risk since August 29, 2007, and that Cerberus sought to renegotiate the terms of the Merger Agreement.
Defendants' failure to disclose this information materially mislead investors and caused the market for URI's shares to trade at prices artificially inflated by the belief that the Merger would proceed. Had the August correspondence between Ceberus and URI been disclosed to the public in the Proxy, URI's shareholders would have been alerted to the risk of the transaction not going forward.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
On July 23, 2007, URI announced that it had entered into a definitive merger agreement (the "Merger Agreement") under which affiliates of Cerberus Capital Management, L.P. ("Cerberus") would acquire all of the outstanding shares of URI common stock for $34.50 per share (the "Merger"). On September 19, 2007, URI filed its Schedule 14A Proxy Statement (the "Proxy") with the Securities and Exchange Commission ("SEC") in anticipation of the shareholder vote to approve the Merger. On October 19, 2007, URI announced that its stockholders approved the Merger Agreement. On November 14, 2007, URI publicly announced that Cerberus had informed the Company that Cerberus was not prepared to proceed with the purchase of URI on the terms set forth in the Merger Agreement.
On the news that Cerberus was backing out of the Merger, the Company posted its biggest drop since it went public in 1997 and plunged 31%, or $10.51, from $34.01 per share to a closing price of $23.50 per share.
The Complaint alleges that the defendants violated the federal securities laws by failing to disclose that, several weeks after the Merger Agreement was signed, Cerberus contacted URI management and expressed its concern about its ability to proceed with the Merger given the changes in the credit and financial markets, on which its financing for the deal depended. It was not until November 14, 2007, when the Company filed a Form 8-K that included letters, dated August 31, 2007 and September 6, 2007 which demonstrated that the Merger had been at risk since August 29, 2007, and that Cerberus sought to renegotiate the terms of the Merger Agreement.
Defendants' failure to disclose this information materially mislead investors and caused the market for URI's shares to trade at prices artificially inflated by the belief that the Merger would proceed. Had the August correspondence between Ceberus and URI been disclosed to the public in the Proxy, URI's shareholders would have been alerted to the risk of the transaction not going forward.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
