Cendant Settles Class Actions For $22M

Law360, New York (May 4, 2006, 12:00 AM EDT) -- Embattled Cendant Corp. will soon have fewer lawsuits to worry about, after reaching a $22 million settlement agreement in two class action suits filed against the company in 1998.

The suits were filed after accounting irregularities were discovered at former Cendant subsidiary CUC International Inc. The suits named both Cendant and CUC as defendants, as well as Ernst & Young, CUC’s auditor.

The complaints alleged that plaintiffs purchased shares of American Bankers Insurance Group Inc. at inflated prices caused by Cendant’s accounting problems.

The shares were...
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