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To: Wolff who wrote (78423)	6/23/2002 7:11:39 AM
From: Wolff	Read Replies (1) of 122087

Supreme Court Declines to Hear Cendant Stock Fraud Case Dow Jones, Feb. 20, 2001 _________________________________________________________________________ Excerpt: "The Supreme Court on Tuesday declined to hear a securities fraud case pitting disgruntled investors against former Cendant Corp. executives. The justices, acting without comment, turned away an appeal by former Cendant Chairman Walter Forbes and Vice Chairman Christopher McLeod of a ruling on how to establish whether a fraud is made "in connection with" a securities offering. Messrs. Forbes and McLeod argued that the June 2000 ruling by the Third Circuit U.S. Court of Appeals is so broad that it could unleash a flood of securities fraud lawsuits... The ruling stems from a lawsuit where a New Jersey district court dismissed securities fraud claims against Cendant and former top executives there. Investors appealed that ruling to the federal appeals court. The appellate court sent the case back to the district court for further review, prompting the former executives to appeal to the Supreme Court. The case revolves around allegedly misleading statements about Cendant's financial health in the course of its proposed 1998 merger with American Bankers Insurance Group, Inc., which promised American Bankers shareholders $67.00 a share, in cash or Cendant stock... Disgruntled investors said they relied on Cendant's upbeat assessment of its finances and "lost enormous sums of money" when American Bankers Insurance stock fell from nearly $65.00 to $35.50 when the merger was terminated. A New Jersey district court rejected the claims, saying connections between any misrepresentations by Cendant and the investors' purchases of American Bankers Insurance Group shares were too tenuous to be deemed to be "in connection with" those purchases."

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