Avis 2008 Annual Report Download - page 36

performance. The closing occurred just prior to Cendant’s April 15, 1998 announcement of the discovery of accounting irregularities in its
former CUC business units. Plaintiffs seek payment of certain “hold back” monies in the total amount of $5.7 million, as well as a contingent
payment based upon future performance that plaintiffs contend should have been approximately $50 million. In early 2007, the parties moved for
summary judgment on various aspects of the case, and in September 2007, the Court granted Cendant’s motion for summary judgment on the
fraud claims and plaintiffs’ motion for summary judgment with respect to the plaintiffs’ claims for hold back monies and for breach of contract.
Including pre-judgment interest, the Court entered judgment in favor of plaintiffs in the amount of approximately $94.3 million plus attorneys’
fees. The judgment entered in favor of plaintiffs was affirmed in May 2008 following the denial of our and plaintiffs’ motions for
reconsideration. The judgment included sanctions against Cendant in the amount of $720,000 and Realogy and Wyndham have paid their
proportional share of such sanctions plus post-judgment interest thereon. As requested by Realogy and Wyndham (who bear the economic
liability for this case, as discussed below), we filed a notice of appeal on May 23, 2008 and appellate bonds were posted by Realogy and
Wyndham in their proportional share. Plaintiffs filed a notice of cross appeal on June 2, 2008 and the Court stayed plaintiffs’ application for
attorneys’ fees pending the outcome of the appeal. On September 12, 2008, we filed the initial appellate brief and plaintiffs filed their opposition
brief and opening brief on their cross appeal on November 26, 2008. Our reply brief and response on cross appeal were filed on January 23, 2009
and oral argument is expected to take place in the spring of 2009. Given the agreements set forth in the Separation Agreement discussed above,
we do not expect that any judgment or payment related to the Credentials Litigation will have a net impact on our financial statements or cash
balances.
Realogy, Wyndham Worldwide and Travelport have also assumed under the Separation Agreement certain contingent and other corporate
liabilities (and related costs and expenses), which include legal proceedings where we are named as a defendant but are primarily related to each
of their respective businesses.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
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