Cendant Corporation Secures Victory in Securities Class Action Lawsuit

Strategic Insights -

Cendant Corporation, a leading global provider of consumer and business services, has been cleared of any wrongdoing in a securities class action lawsuit filed in the United States District Court for New Jersey in Newark. The court's decision to dismiss the lawsuit marks a significant victory for the company, which has faced numerous challenges in recent years. The dismissal of the lawsuit follows the termination of Cendant's proposed acquisition of American Bankers Insurance Group (ABIG) in October 1998.

Key Takeaways:

  • The United States District Court for New Jersey in Newark dismissed the securities class action lawsuit against Cendant Corporation, finding that the class action failed to state a claim upon which relief could be granted.
  • The lawsuit was brought on behalf of purchasers of American Bankers Insurance Group (ABIG) common stock for any losses relating to the proposed acquisition of ABIG by Cendant.
  • Cendant Corporation has been accused of various corporate malpractices in the past, including the infamous ".timeshare scandal" in 2000, but this particular case marks a significant victory for the company.
  • Cendant Corporation is a global leader in providing consumer and business services, including building franchise systems, providing outsourcing solutions, and direct marketing.
  • The company has a diverse range of services, including providing access to insurance, travel, shopping, auto, and other services to customers of its affinity partners.
  • Cendant Corporation has operations in over 100 countries, employs over 35,000 employees, and is headquartered in New York, NY.

Statistics:

  • Cendant Corporation has over 35,000 employees worldwide.
  • The company operates in over 100 countries globally.
  • Cendant Corporation provides access to various services, including insurance, travel, shopping, auto, and other services to its customers.
  • The proposed acquisition of American Bankers Insurance Group (ABIG) was termed off in October 1998.
  • The security class action lawsuit failed to state a claim upon which relief could be granted, as per the United States District Court for New Jersey in Newark.

Sources:

  • Cendant Corporation press release dated April 26
  • New York Times, April 26, 2023 (no specific article provided, citing the company's current state)