CalPERS, Sacramento; New York State Common Retirement Fund, Albany; and the five New York City pension funds are filing a motion in federal courts in New Jersey, Connecticut and Pennsylvania to be co-lead plaintiffs in shareholder lawsuits against Cendant Corp.
The suits allege Cendant issued false and misleading financial statements to investors about its income and earnings and that as a result the stock plummeted 47% on April 14 - one of the largest single-day losses for holders of a single stock. The suit also claims former Cendant officers and directors sold or filed to sell more than 4 million shares of the stock before the announcement.
The retirement systems, which own a combined total of 111.7 million Cendant shares valued at $242 million, estimate they have lost a total of $89 million because of Cendant's alleged misstatements.
