Securities Class Action Targets Cendant Spin-Off

Law360, New York (April 20, 2006, 12:00 AM EDT) -- A group of investors has filed a proposed securities class action against PHH Corp., a Cendant Corp. spin-off, saying the company’s top executives engaged in a fraudulent scheme to improperly inflate its reported deferred tax assets by tens of millions of dollars.

The charges mark the third such action filed against the company in less than two months.

The suit, filed in the U.S. District Court for the District of New Jersey, alleges that the investors were deceived when PHH executives—including the company’s chief executive officer...
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