Two law firms are investigating potential shareholder claims against Huron Consulting Group Inc concerning possible securities violations after the company disclosed an accounting scandal on Friday

Huron on Friday said it was forced to restate its results over three years, slashing its profits by almost half

Shares of the company, which provides consulting services to Fortune 500 companies, sank more than 57 percent in after-hours trading on Friday, wiping out more than half its previous market value of almost $1 billion.

Law offices of Howard G Smith of Bensalem, Pennsylvania, and the Kendall Law Group each issued statements saying they are investigating shareholder claims against Huron.

Howard G Smith in a statement said its investigation focuses on allegations that the company issued inaccurate financial statements between April 27, 2006, and July 31, 2009.

Chicago-based Huron was founded by former staff from Arthur Andersen, the accounting firm that collapsed in connection with the Enron Corp scandal in 2002.

The company said its restatements significantly raise its costs for 2006-2008. It also said it is separately investigating its allocation of chargeable hours after an inquiry from the Securities and Exchange Commission.

(Reporting by Yinka Adegoke; Editing by Leslie Adler)