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CUC International controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

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  1. 1998

    CUC accounting fraud and the Cendant disclosure

    In April 1998, Cendant disclosed that CUC had fraudulently overstated income by more than $500 million for prior periods. Investigators found that membership revenue had been overstated and cancellation information withheld, allowing reported earnings to be manipulated. The disclosure caused a dramatic fall in Cendant’s share price, generated SEC enforcement proceedings and led to substantial shareholder settlements. Former executives Kirk Shelton and Walter Forbes were later convicted of fraud-related offenses.

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