20.11.2007

Investor sues United

A United Rentals shareholder, Vincent DeCicco, has filed a lawsuit against United Rentals over the collapse of the proposed leveraged buyout by Cerberus, contending that company executives concealed risks about the deal's financing before it fell apart.

DeCicco, represented by law firm Abbey Spanier Rodd & Abrams, is also seeking class-action status for the lawsuit. He has also named senior United Rentals executives and directors as defendants in addition to the company.

The lawsuit, brought in U.S. District Court of Connecticut, argues that United violated securities laws by not properly disclosing to shareholders that Cerberus Capital Management had expressed concerns about its ability to proceed with the $4 billion deal.

According to the complaint, United Rentals' failure to disclose this information "was materially misleading because it caused the market for its shares to trade at prices artificially inflated by the belief that the transaction would proceed."
See United sues Cerberus