Cendant Corp. in New York said Monday that it will take a $17 million charge to fourth-quarter earnings as a result of a verdict Friday in a Tennessee court against its subsidiary, Progeny Marketing Innovations, in a contract dispute with American Bankers Insurance Company of Florida and certain affiliates.
The verdict in the Chancery Court of Tennessee in Franklin prompted Cendant to record a net charge of $17 million after taxes, or 2 cents per diluted share, to fourth-quarter earnings per share from continuing operations. Despite the charge, Cendant said, it expected to report earnings per share from continuing operations in the quarter at the high end of previously disclosed guidance when it released earnings later Monday.
Cendant is primarily a provider of travel and residential real estate services to businesses and consumers in more than 100 countries.
