Cendant Denies Report of SEC Investigation
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Shares of Cendant Corp. sank as much as 9.5% in trading Monday on a report -- denied by the company -- that the Securities and Exchange Commission added the real-estate and travel firm to its investigation of Homestore Inc.
Cendant shares recovered to close down 44 cents, or 3.5%, at $12.26 on the New York Stock Exchange.
“There is no basis for, nor is there any indication of an investigation by the [SEC] or other authorities into Cendant with regard to the alleged activities at Homestore.com,” Cendant said in response to a story published in the New York Times.
Homestore, an Internet real-estate firm in Westlake Village, has been under investigation by the SEC and Justice Department for a year on allegations that it inflated revenue, and an investor group headed by CalPERS has filed suit.
-- Thomas S. Mulligan
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