NEW YORK— Cendant Corp. reports that the U.S. Supreme Court will let stand its $2.8 billion settlement of a shareholder suit linked to accounting problems arising from its 1997 merger with CUC International, according to Reuters. Cendant said by mid-July it will fund its remaining obligations under the settlement agreement, using cash on hand. If needed it will tap existing and available credit lines, according to the report. Cendant in December 1999 struck the shareholder settlement, one of the largest in history, as it sought to bring a close to an accounting scandal that had wiped billions of dollars from its market value and led federal securities regulators to bring civil and criminal charges against several former Cendant and CUC executives. The controversy emerged after the former HFS Inc. merged with CUC International in 1997 to form Cendant. CUC had used irregular accounting practices to inflate earnings by nearly half a billion dollars over a three-year period before the merger.
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