Cendant controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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1998
CUC accounting fraud
Following the merger that created Cendant, an internal review found that former CUC management had fabricated or improperly reported financial results. Reported revenue had been overstated by roughly $500 million over three years, and CUC's reported 1997 profit was restated as a substantial loss. The disclosure caused a collapse in Cendant's share price and approximately $14 billion in lost market value. Walter Forbes resigned, while E. Kirk Shelton later faced federal criminal prosecution and SEC action.