March 19, 2002
Cendant To Pay Final Sums In Settlement Of Years-Old Shareholder Lawsuit
Inman News Features
Cendant Corp. (NYSE: CD) today announced it will pay its remaining obligations under a years-old shareholder lawsuit by mid-July, now that the U.S. Supreme Court has decided not to review a December 1999 settlement that ordered the company to pay $2.8 billion in damages.
Cendant said it will make the final payments with cash on hand or will tap existing and available credit facilities, if necessary.
Cendant Chairman Henry Silverman said the company was pleased that the court had removed the final contingency to concluding the settlement.
The original lawsuit arose after $500 million in accounting irregularities surfaced after the 1997 merger of HFS Inc. and CUC International that created Cendant Corp. HFS then owned the Century 21, Coldwell Banker and ERA real estate brands. CUC International was a direct advertising company and the entity where the accounting problems took place.
The settlement ordered Cendant to pay cash reimbursements to shareholders who had purchased stock in Cendant or CUC International between May 31, 1995, and Aug. 28, 1998, and to establish an audit board comprised of entirely independent directors rather than company officials.
Copyright: Inman News Service