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Cendant Corporation: The Accounting Fraud That Shocked the Travel Industry - Part 4: When the Illusion Broke
Season 19
Episode 4
Published 1 day, 19 hours ago
Description
One morning in April nineteen ninety-eight, everything changed. The company that had promised endless growth confessed: its numbers couldn’t be trusted. In a single day, Wall Street’s faith in Cendant evaporated—wiping out billions and marking the biggest stock drop anyone had ever seen.The unraveling started quietly. Cendant announced it would restate its earnings because of accounting irregularities at CUC—the company whose numbers had made the merger story so compelling. Suddenly, the market realized it had been pricing shares based on a foundation that was rotten. The merger, completed just months before, had been celebrated as a triumph. Now, every promise, every forecast, was under a cloud. In the travel and consumer services world, Cendant was a giant. Its growth story was supposed to be built on solid travel reservations, memberships, and franchises. Now, all that strength looked like an illusion.Learn more at: https://thefraudarchive.com/fraud/cendant-corporation
The Fraud Archive is part of The Archive Network by Jonkai Ventures, a collection of podcasts dedicated to exploring history's greatest cons, scams, and financial crimes.
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