To: Bob Davis who wrote (5825 ) 8/3/1998 11:02:00 PM From: Selfop Respond to of 8879
Even big corporations have problems. | Next | Respond | Earnings | Schoengold & Sporn, P.C. Files Class Action with Extended Class Period Against Cendant Corporation July 31, 1998 03:29 PM NEW YORK, July 31 /PRNewswire/ -- Notice is hereby given that on July 31, 1998 a securities class action lawsuit was filed in the United States District Court for the District of New Jersey against Cendant Corporation ("Cendant" or the "Company") CD and certain officers and directors of the Company, on behalf of purchasers of Cendant and CUC International securities during the period March 21, 1995 to April 15, 1998, inclusive (the "Class Period"). The Complaint asserts claims under the federal securities laws, including claims for violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and SEC Rule l0b-5. The lawsuit alleges that Cendant and CUC, which combined with HFS Inc. to form Cendant, and certain of their officers and directors engaged in a scheme to artificially inflate the market price of Cendant and CUC common stock during the Class Period. During the Class Period, Cendant's and CUC's financial reporting did not comply with generally accepted accounting principles. On April 15, 1998 Cendant reported that accounting irregularities would cause it to restate earnings from 1995, 1996, and 1997 and to revise its 1997 operating income downward by approximately $100 to $115 million. This improper accounting had the effect of materially inflating Cendant's and CUC's reported earnings and enabled at least one insider to sell Cendant stock at artificially inflated prices while possessing material, adverse, non-public information. The Plaintiffs seek to recover damages on their own behalf and on behalf of all purchasers of Cendant and CUC common stock. Plaintiff seeks to recover damages on behalf of the class members, and is represented by the law firm of Schoengold & Sporn, P.C., 233 Broadway, New York, New York 10279, 212-964-0046, Fax: 212-267-8137, E-Mail: SCHOENGOLD@AOL.COM. For the past 30 years, Schoengold & Sporn has specialized in representing victims of securities fraud violations. During that time, the firm -- acting as lead or co-lead counsel or a member of an Executive Committee -- has helped to recover hundreds of millions of dollars for injured shareholders, including a $77.5 million settlement in the famous Wedtech securities litigation, which was heralded by the Wall Street Journal as one of the largest settlements of any private securities fraud case (see Wall Street Journal 2/10/92, p. B-6) which stated: "$77.5 million settlement ... reached in a securities fraud case stemming from the Wedtech scandal ... The settlement with 29 defendants ... is believed to be one of the largest ever in a civil securities fraud case ... 'This is a global settlement,' said Samuel P. Sporn, a plaintiffs attorney at the New York law firm Schoengold & Sporn. Mr. Sporn said the settlement represents almost half of the more than $160 million in stocks and bonds that Wedtech sold to the public between 1983 and 1986." (Mr. Sporn Member of Executive Committee) If you are a member of the class described above, you may, not later than 60 days from April 17, 1998, move the Court for an order to serve as a lead plaintiff, provided you meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests with respect to this matter, please contact Jay P. Saltzman, Esq. or Rosemary McBride at 233 Broadway, New York, New York 10279, or e-mail at SCH0ENG0LD@A0L.C0M. SOURCE Schoengold & Sporn, P.C.