May 21, Question Instead of a written final exam, you will work to read, analyze, and evaluate Major Case 4, Cendant Corporation, pages Your grade will be based on a PowerPoint presentation, which is to be submitted in Week 8.
Walls of the U. District Court for the District of New Jersey. The case stemmed from a restatement of financial statements that was announced just a few months after a highly-publicized merger of two high-flying companies, HFS Incorporated and CUC International, Inc.
The resulting company was named Cendant Corporation. At the same time, we also moved for certification of a Class of all persons and entities, other than defendants and their affiliates, who purchased or acquired publicly traded securities of Cendant and its predecessor, CUC, during the period from May 31, through August 28, At the same time, we filed a motion for partial summary judgment, seeking a liability finding against Cendant for the false statements made in the registration statement for the merger.
While permitting the U. This was a key ruling in terms of allowing us to continue prosecuting the case. From the outset of the case, we conducted an extensive investigation concerning the allegations of wrongdoing pertaining to each defendant, the damages suffered by the class, and the financial capabilities of the defendants.
Through negotiations with Cendant concerning the class motion and the partial summary judgment motion filed at the outset of the case, we obtained from Cendant copies of all documents that were part of the internal investigation conducted in preparation of the audit committee report filed with the SEC in Augustnotwithstanding that under the PSLRA, with very limited exceptions, there is a statutorily-imposed stay of discovery once any defendant files a motion to dismiss the complaint.
At the time, this was the first instance that such an analysis had been undertaken in the context of a securities class action.Get help on 【 Cendant Corporation Essay 】 on Graduateway Huge assortment of FREE essays & assignments The best writers! In the CUC’s case, there was a pressure to grow and expand by merging with HFS, Inc.
In order to do this, the company needed to make their stock prices look appealing. Case Study: Cendant Corporation, One Of The World's Largest Hotel And Real Estate Franchises Words Feb 3rd, 5 Pages Cendant Corporation, one of the world’s largest hotel and real estate franchises was known as the largest accounting fraud before Enron.
Cendant Corporation was created through the December 17, , merger of HFS and CUC.
Cendant provided certain membership-based and Internet-related consumer services and controls franchise brand names in the hotel, residential real estate brokerage, car rental, and tax preparation businesses. It is provided for the Daniels Fund Ethics Initiative at the University of New Mexico and is intended for classroom Wyndham Worldwide was spun off from Cendant Corporation in In this short time, the Research and study opportunities.
Cendent Corporation Major Case Study Cendant Corporation 1 Briefly summarize the accounting techniques used by Cadent to manipulate financial results.
Categorize each technique into one of Schilit’s financial shenanigans. Cendant used aggressive accounting to shift current marketing expenses to a later period by capitalizing the cost; this is shenanigan number 4. Aug 27, · Executives at the former CUC International, now a part of Cendant Corp., "deliberately and fictitiously" manufactured about $ million in fake revenue over a .