[TMSR alliance partner] Cendant re: Accounting Fraud/Insider Selling.
California, New York State and New York City Pension Funds Seek Co-lead Plaintiff Status in Cendant Shareholder Lawsuits
"...The California Public Employees' Retirement System (CalPERS), together with the New York State Common Retirement Fund (NYSCRF) and the New York City pension funds, today is filing a motion to be co-lead plaintiffs in a series of shareholder lawsuits against Cendant Corporation [NYSE:CD - news], one of America's largest corporations.
The lawsuits, filed in the U.S. District Courts of New Jersey, Connecticut and Pennsylvania, allege that the Parsippany, New Jersey-based Cendant issued false and misleading financial statements to the investing public about the company's income and earnings. The lawsuits further allege that certain former officers and directors of the company sold or filed intentions to sell over 4 million shares of Cendant common stock preceding the announcement...CalPERS, NYSCRF and the New York City funds own a combined total of 11.7 shares of Cendant common stock. The pension funds estimate that they have lost approximately $89 million as a result of Cendant's alleged misstatements...The lawsuits against Cendant came after the company's April 15, 1998 announcement to restate its 1997 income and earnings due to accounting irregularities at certain business units. Cendant announced that it would be forced to cut its 1997 net income by as much as $115 million, and its 1997 earnings per share by 11 to 13 cents.
Following the company's announcement, shareholders sustained losses amounting to nearly $13 billion, one of the largest single day losses for holders of a single stock. The common stock share price fell from $36.625 at the market's closing on April 14 to $19.063 at closing on April 16..." © 1998 biz.yahoo.com
...TMSRs shares plunged from $19/share [contemporaneous with BUY recommendations from Wedbush Morgan (10/97) et al, a $15 secondary offering prospectus led by Van Kasper (11/97), and glowing reports from Cereghino, (2/98) et al] to under $8/share pursuant to alleged criminal gross negligence, alleged misrepresentation(s), alleged breach of fiduciary duty/capacity, alleged accounting 'anomolies', alleged insider selling (throughout fiscal 1997 and Q1 '98) contemporaneous/preceding said accounting 'anomolies' formal disclosure, ...and other issues of facts/law as previously cited on this thread, as a matter of record. |
