Pension Funds File Suits Against Cendant

The California Public Employees’ Retirement System and a number of pension funds in New York said they had filed suits against Cendant Corp., alleging the business and consumer services company misled investors about its financial results. In a statement, CalPERS, New York State Common Retirement Fund and several New York City pension funds said the suits were filed in U.S. district courts in New Jersey, Connecticut and Pennsylvania. The funds estimate they have lost $89 million as a result. Stamford, Conn.-based Cendant, formed by the $18-billion merger of CUC International Inc. and HFS Inc. in December 1997, said in mid-April that it would restate its 1997 results and possibly results of prior years having discovered systematic accounting fraud at the corporate level of CUC. The lawsuits allege former officers and directors of Cendant sold or filed intentions to sell more than 4 million shares of Cendant common stock prior to making false and misleading statements to investors about financial results. Cendant shares fell 56 cents to close at $20.56 on the New York Stock Exchange.