Knowledge (XXG)

CUC International

Source πŸ“

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too little real income, however, the real resources of the company were dwindling, despite the considerable flotation of the stock numbers. As the imaginary books and the real company finances diverged more and more, the requirements of appearances became greater. Even the cooked books were insufficient to cover all of the company's losses, at which time it turned to mergers with, and acquisition of, new companies. Purchased companies' assets could be similarly inflated, and the increase either boost operating income or write off losses. The misreporting of assets by CUC from 1995 to 1997 is similar to that performed during the
199:. After the merger, Cendant retained its core business as a direct marketer and thereafter also specialized in hotel franchises, car rentals, travel agencies and its consumer software operations, Cendant Software. The merger of these two companies, which between them owned "a virtual monopoly in the worldwide market for full-service timeshare exchange services" according to the 195:. A competition was held internally at CUC, primarily among its senior marketing staff but open to all employees, to come up with a new corporate name. The winner was to receive dinner "anywhere in the world". No employee submission was selected to win, as the name of the company had already been decided. The new company was named 316:
Investigators found that over US$ 500 million in non-existent company income had been reported during 1996 and 1997. Membership sales revenue had been overreported and membership cancellations information held back, allowing for the company's earnings to be manipulated at will. With too much debt and
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It bought Sierra for $ 1.06 billion and Davidson for $ 1.14 billion, both in stock. These acquisitions allowed CUC, as a larger outlet, to streamline its distribution network. In addition, product placements and advertisements in these software companies' products allowed CUC to find new customers in
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During the 1980s and early 1990s, CUC continued to grow and acquire other companies. It made strategic deals with other entertainment, communication, retail and investment companies such as America Online and AT&T. and grew to have over 30 million customers via its mail order clubs. CUC did not
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CUC's main line of operations was its mail-order clubs such as Shopper’s Advantage, AutoVantage, Traveler’s Advantage and its Comp-U-Card program, and it had been trying to find a way to streamline its clubs and sell retail through a kind of interactive television. In an age before the internet and
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On April 16, 1998, less than one year after the new brand was introduced, Cendant disclosed that for three years prior to the merger, CUC had fraudulently overstated its income by over US$ 500 million. This caused Cendant stock to plummet from $ 39 to $ 20 in a single day, eventually reaching $ 9,
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In addition to their prison terms, Shelton and Forbes were each ordered to pay Cendant US$ 3.275 billion in restitution. Cendant is unlikely to ever receive the full amount, as according to the payment schedule of US$ 2,000 per month ordered by the judge, it would take over 134,000 years to pay.
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Shelton was convicted in January 2005 of 12 counts of fraud and related charges and sentenced to 10 years in prison. Shelton and Forbes were tried together. Although Shelton was convicted of all 12 charges brought, the jury was unable to reach a verdict for Forbes on any charge. A
276:, for the "long-running financial fraud" which, it alleged, started in 1995. The SEC stated that CUC inflated its books in order to inflate its stock price, which allowed it to use its stock to buy other companies, and in turn these 160:
CUC went through various company presidents and lost a lot of money during the 1970s. By 1979, it was losing more than $ 2 million a year. By 1983, Forbes and his company had found investors such as
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was a membership-based consumer services conglomerate with travel, shopping, auto, dining, home improvement and financial services offered to more than 60 million customers worldwide based in
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also deadlocked Forbes' second trial and a third trial was set for September 2006. Retried and convicted, he was sentenced to 12 years on January 17, 2007. The former CUC
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and costing shareholders about US$ 14 billion. Cendant/CUC was eventually required to pay more than US$ 2.85 billion in class action settlements to shareholders.
1191: 1438: 956: 1291:"CUC BUYS ITS WAY INTO INTERNET TRANSACTIONS; IMAGINE AT&T OWNING THE COMPANY; NOT MOSAIC, NETSCAPE; COMMERCE THROUGH COMPUSERVE; OTHER NEWS:" 1236: 1216: 233:
After the accounting scandal, the original Comp-U-Card division was bought out by some remaining executives and reorganized into a company called
203:, caused the FTC to require "the parties to divest one of their timeshare exchange companies to re-establish a viable competitor in the market". 1170: 1117: 1105: 1035: 1335: 1378: 179:
In February 1996, seeking to expand its operations into the field of interactive entertainment, CUC approached the software companies
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were executed in order to generate financial reserves and purchase reserves that were intended to be "big enough to bury the fraud".
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The Securities and Exchange Commission brought civil charges against CUC's president Kirk Shelton and CEO and chairman
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make any large acquisitions until 1995. Before that time, all acquisitions were relatively small and strategic.
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Plextel Telecommunications Inc. and Tango Communications, Inc. (later merged and renamed to Spark Services)
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On October 23, 2005, Cendant Corporation announced its decision to split into four separate companies:
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but had lost nearly $ 14 million. After licensing their "interactive shopping" idea in Europe, the
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Financial Institution Services, Inc. and Madison Financial Corporation (renamed FISI*Madison)
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credit card protection, fleet fuel cards, provider of vacation travel packages and cruises
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after its purchase of The Source. It later offered its Shoppers Advantage service on
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service called Comp-U-Card begun in 1973, was made available online to users of
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Their main product, a shopping service, originally a membership telephone-based
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group took CUC public in the United States in 1983 and raised $ 20 million.
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Cendant Software, composed of Sierra, Davidson & Associates (including
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all pleaded guilty in June 2000 to several fraud and related charges.
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SEC press release on bringing civil suits against Forbes and Shelton
1295: 219: 142: 82: 66: 1132:"Cendant Judge Targets September for Third Walter Forbes Trial", 1601: 1581: 342: 1439:"ONLINE BOOKSTORE'S MUSIC SITE SPINOFF GOING AFTER CD MARKET" 1013:. Federal Trade Commission. December 17, 1997. Archived from 993:"CUC TO PAY $ 2,200M IN SHARES FOR SIERRA ON-LINE, DAVIDSON" 153:, although its web based service first went online in 1995. 1336:"COMPANY NEWS; WELCOME WAGON ACQUIRED BY CUC INTERNATIONAL" 1198:: SEC compliance and enforcement challenges in the new era 640:
nationwide apartment rental information on the Internet
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Dept. of Justice press release on Shelton's conviction
1087:"Cendant Case Scorecard: Government 3; Book-Cookers 0" 583:
hunting, fishing and handyman membership organization
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investigation into what, at the time, was the biggest
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third-party marketer of financial products for banks
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as well. It was perhaps the first company conducting
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Dept. of Justice press release on Forbe's conviction
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sites such as Amazon.com, this idea was innovative.
76: 60: 50: 38: 26: 1353: 1351: 1059: 403:loyalty solutions and package enhancement program 601:value-added tax refunds for travelers to Europe 1399:"Press Release issued by CUC International Inc" 1206: 1204: 241:and is still located in Stamford, Connecticut. 1273:"Is Interval International owned by Marriott?" 1255:"Wrapping paper company sold for $ 31 million" 1232:"GENERAL FORM FOR REGISTRATION OF SECURITIES" 1053: 1051: 1049: 1047: 8: 1519:"CUC TO ACQUIRE HEBDO MAG FOR $ 440 MILLION" 987: 985: 983: 226:, which then merged its games business with 188:demographics it had not previously reached. 21: 1249: 1247: 1144: 1142: 898:online grocery and household goods service 382:insurance and package enhancement products 218:, was sold in 1998 to the French publisher 1597:"Short Take: CUC invests in online grocer" 1310: 1308: 1306: 816:classified-advertisement magazine company 421:books of entertainment and dining coupons 328: 20: 1419:"CUC to Buy Ideon in $ 375 Million Deal" 1379:"CUC INTERNATIONAL TO BUY ADVANCE ROSS" 1237:U.S. Securities and Exchange Commission 1217:U.S. Securities and Exchange Commission 938: 347: 1632:April 1998 crimes in the United States 957:"On-Line Middleman Opens for Business" 7: 708:& National Leisure Group (NLG)) 580:NAOG (North American Outdoor Group) 91:CUC (Comp-U-Card) International Inc. 34:CUC (Comp-U-Card) International Inc. 972:"Deal Brings Marketing To the Fore" 105:. In 1998, it became involved in a 1539:"Berkeley Systems Acquired by CUC" 1459:"CUC Will Buy Knowledge Adventure" 1149:Joshua Lipton (January 17, 2007). 191:In December 1997, CUC merged with 107:Securities and Exchange Commission 14: 1316:"FORM S-4 REGISTRATION STATEMENT" 796:publisher of Halbert's genealogy 544:credit card enhancement services 400:National Card Control Inc (NCCI) 1577:"Short Take: CUC buys Match.com" 1479:"MERGER PRODUCES SPARK SERVICES" 16:Former consumer services company 1151:"No Leniency For Walter Forbes" 358:Benefit Consultants, Inc.(BCI) 321:and other more recent frauds. 185:Davidson & Associates Inc. 1: 1066:. McGraw-Hill. pp. 3–9. 857:(later folded into Davidson) 622:home-buyer welcoming program 97:, US, and founded in 1973 by 1559:"THIS DAY IN SIERRA HISTORY" 1058:Howard Mark Schilit (2002). 619:GETKO (Getting to Know You) 523:marketing to new homeowners 129:in the mid-1980s, and later 900: 818: 759: 736: 713: 688: 665: 642: 603: 546: 525: 484: 461: 418:Entertainment Publications 384: 363: 361:accidental death insurance 1658: 1563:THIS DAY IN SIERRA HISTORY 1524:Crain's Cleveland Business 1444:Crain's Cleveland Business 659:Davidson & Associates 222:, which then merged with 1212:"TENDER OFFER STATEMENT" 1022:Federal Trade Commission 278:mergers and acquisitions 201:Federal Trade Commission 290:chief financial officer 237:. It was later renamed 895:NetGrocer (25% stake) 437:Interval International 208:Blizzard Entertainment 113:in corporate history. 1585:. September 25, 1997. 1062:Financial shenanigans 1033:Cendant Press Release 730:Book Stacks Unlimited 541:Credit Card Sentinel 95:Stamford, Connecticut 1605:. November 19, 1997. 1447:. February 17, 1997. 1407:. February 20, 1996. 1367:. September 1, 1995. 1299:. November 21, 1994. 1261:. December 28, 1992. 1220:. February 10, 1998. 999:. February 21, 1996. 682:Sierra Entertainment 1637:Accounting scandals 1507:. February 3, 1997. 1467:. November 6, 1996. 1387:. October 19, 1995. 1344:. February 3, 1995. 753:Knowledge Adventure 482:Online marketplace 325:Acquisition history 212:Knowledge Adventure 181:Sierra On-Line Inc. 151:electronic commerce 62:Number of locations 23: 1622:Corporate scandals 1487:. August 15, 1997. 1194:2011-10-08 at the 1173:2009-05-31 at the 1120:2009-05-14 at the 1108:2009-05-31 at the 1038:2006-01-03 at the 976:The New York Times 961:The New York Times 871:September 25, 1997 725:September 17, 1996 565:European licensee 500:Essex Corporation 264:Accounting scandal 111:accounting scandal 1504:Avis Budget Group 1464:Los Angeles Times 1427:. April 23, 1996. 1404:Avis Budget Group 1364:Avis Budget Group 1321:Avis Budget Group 1240:. March 10, 2016. 910: 909: 891:November 19, 1997 704:Ideon (SafeCard, 700:February 20, 1996 677:February 20, 1996 654:February 20, 1996 473:November 21, 1994 258:Avis Budget Group 254:Wyndham Worldwide 88: 87: 22:CUC International 1649: 1607: 1606: 1593: 1587: 1586: 1573: 1567: 1566: 1565:. July 24, 2008. 1555: 1549: 1548: 1547:. April 7, 1997. 1535: 1529: 1528: 1527:. 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June 21, 1996. 1312: 1301: 1300: 1287: 1281: 1280: 1269: 1263: 1262: 1251: 1242: 1241: 1228: 1222: 1221: 1208: 1199: 1184: 1178: 1168:Dept. of Justice 1165: 1159: 1158: 1146: 1137: 1130: 1124: 1100: 1094: 1084: 1078: 1077: 1065: 1055: 1042: 1030: 1024: 1018: 1017:on May 14, 2009. 1007: 1001: 1000: 989: 978: 969: 963: 954: 948: 943: 928:Worldcom scandal 904: 892: 872: 855:Gryphon Software 851: 835:Berkeley Systems 831: 822: 808: 790: 772: 763: 749: 748:November 5, 1996 740: 726: 717: 701: 692: 678: 669: 655: 646: 634: 633:February 6, 1996 616: 607: 595: 594:October 18, 1995 577: 559: 550: 538: 529: 515: 514:February 2, 1995 497: 488: 474: 465: 453: 433: 415: 397: 388: 376: 367: 355: 329: 293:Cosmo Corigliano 216:Gryphon Software 193:HFS Incorporated 24: 1657: 1656: 1652: 1651: 1650: 1648: 1647: 1646: 1627:Corporate crime 1612: 1611: 1610: 1595: 1594: 1590: 1575: 1574: 1570: 1557: 1556: 1552: 1537: 1536: 1532: 1517: 1516: 1512: 1497: 1496: 1492: 1484:Chicago Tribune 1477: 1476: 1472: 1457: 1456: 1452: 1437: 1436: 1432: 1417: 1416: 1412: 1397: 1396: 1392: 1377: 1376: 1372: 1357: 1356: 1349: 1334: 1333: 1329: 1314: 1313: 1304: 1289: 1288: 1284: 1279:. May 11, 2020. 1271: 1270: 1266: 1253: 1252: 1245: 1230: 1229: 1225: 1210: 1209: 1202: 1196:Wayback Machine 1185: 1181: 1175:Wayback Machine 1166: 1162: 1148: 1147: 1140: 1131: 1127: 1122:Wayback Machine 1112: 1110:Wayback Machine 1101: 1097: 1085: 1081: 1074: 1057: 1056: 1045: 1040:Wayback Machine 1031: 1027: 1019: 1009: 1008: 1004: 991: 990: 981: 970: 966: 955: 951: 944: 940: 936: 915: 902: 890: 870: 849: 829: 820: 807:August 15, 1997 806: 789:January 8, 1997 788: 770: 761: 747: 738: 724: 715: 699: 690: 676: 667: 653: 644: 632: 614: 605: 593: 575: 557: 548: 536: 527: 513: 495: 486: 472: 463: 451: 431: 413: 395: 386: 374: 365: 353: 327: 307:Casper Sabatino 266: 162:Reader's Digest 119: 79: 69: 63: 43: 31: 17: 12: 11: 5: 1655: 1653: 1645: 1644: 1639: 1634: 1629: 1624: 1614: 1613: 1609: 1608: 1588: 1568: 1550: 1530: 1510: 1490: 1470: 1450: 1430: 1424:New York Times 1410: 1390: 1384:New York Times 1370: 1347: 1341:New York Times 1327: 1302: 1282: 1264: 1243: 1223: 1200: 1179: 1160: 1138: 1134:Bloomberg News 1125: 1095: 1079: 1072: 1043: 1025: 1002: 979: 964: 949: 937: 935: 932: 931: 930: 925: 919:Affinion Group 914: 911: 908: 907: 905: 899: 896: 893: 887: 886: 884: 881: 878: 873: 867: 866: 864: 861: 858: 852: 846: 845: 843: 840: 837: 832: 826: 825: 823: 817: 814: 809: 803: 802: 800: 797: 794: 791: 785: 784: 782: 779: 776: 773: 767: 766: 764: 758: 755: 750: 744: 743: 741: 735: 732: 727: 721: 720: 718: 712: 709: 706:Wright Express 702: 696: 695: 693: 687: 684: 679: 673: 672: 670: 664: 661: 656: 650: 649: 647: 641: 638: 635: 629: 628: 626: 623: 620: 617: 611: 610: 608: 602: 599: 596: 590: 589: 587: 584: 581: 578: 576:September 1995 572: 571: 569: 566: 563: 560: 554: 553: 551: 545: 542: 539: 533: 532: 530: 524: 521: 516: 510: 509: 507: 504: 501: 498: 492: 491: 489: 483: 480: 475: 469: 468: 466: 460: 457: 454: 448: 447: 445: 442: 439: 434: 428: 427: 425: 422: 419: 416: 410: 409: 407: 404: 401: 398: 392: 391: 389: 383: 380: 377: 371: 370: 368: 362: 359: 356: 350: 349: 346: 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2006 1135: 1129: 1126: 1123: 1119: 1116: 1111: 1107: 1104: 1099: 1096: 1092: 1088: 1083: 1080: 1075: 1073:0-07-138626-2 1069: 1064: 1063: 1054: 1052: 1050: 1048: 1044: 1041: 1037: 1034: 1029: 1026: 1023: 1016: 1012: 1006: 1003: 998: 994: 988: 986: 984: 980: 977: 973: 968: 965: 962: 958: 953: 950: 947: 942: 939: 933: 929: 926: 924: 920: 917: 916: 912: 906: 897: 894: 889: 888: 885: 882: 879: 877: 874: 869: 868: 865: 862: 859: 856: 853: 848: 847: 844: 841: 838: 836: 833: 830:April 1, 1997 828: 827: 824: 815: 813: 810: 805: 804: 801: 798: 795: 792: 787: 786: 783: 780: 777: 774: 769: 768: 765: 756: 754: 751: 746: 745: 742: 733: 731: 728: 723: 722: 719: 710: 707: 703: 698: 697: 694: 685: 683: 680: 675: 674: 671: 662: 660: 657: 652: 651: 648: 639: 636: 631: 630: 627: 624: 621: 618: 613: 612: 609: 600: 598:Advance Ross 597: 592: 591: 588: 585: 582: 579: 574: 573: 570: 567: 564: 561: 556: 555: 552: 543: 540: 535: 534: 531: 522: 520: 519:Welcome Wagon 517: 512: 511: 508: 505: 502: 499: 494: 493: 490: 481: 479: 476: 471: 470: 467: 458: 456:Sally Foster 455: 452:December 1992 450: 449: 446: 443: 440: 438: 435: 430: 429: 426: 423: 420: 417: 412: 411: 408: 405: 402: 399: 394: 393: 390: 381: 378: 373: 372: 369: 360: 357: 352: 351: 344: 340: 337: 334: 331: 330: 324: 322: 320: 319:Enron scandal 314: 310: 308: 305: 301: 298: 294: 291: 287: 281: 279: 275: 274:Walter Forbes 270: 263: 261: 259: 255: 251: 247: 242: 240: 236: 231: 229: 225: 221: 217: 213: 209: 204: 202: 198: 194: 189: 186: 182: 177: 173: 171: 167: 163: 158: 154: 152: 148: 144: 140: 136: 132: 128: 124: 116: 114: 112: 108: 104: 103:Walter Forbes 100: 96: 92: 84: 81: 75: 72: 68: 67:International 65: 59: 56: 55:United States 53: 49: 46: 45:United States 41: 37: 33: 30: 25: 19: 1600: 1591: 1580: 1571: 1562: 1553: 1542: 1533: 1522: 1513: 1502: 1499:"PROSPECTUS" 1493: 1482: 1473: 1462: 1453: 1442: 1433: 1422: 1413: 1402: 1393: 1382: 1373: 1362: 1339: 1330: 1319: 1294: 1285: 1277:SidMartinBio 1276: 1267: 1258: 1235: 1226: 1215: 1187: 1182: 1163: 1154: 1133: 1128: 1098: 1090: 1082: 1061: 1028: 1015:the original 1005: 997:Tech Monitor 996: 975: 967: 960: 952: 941: 771:January 1997 496:January 1995 414:January 1992 315: 311: 282: 271: 267: 243: 232: 205: 190: 178: 174: 166:Eckerd Drugs 159: 155: 120: 99:Kirk Shelton 90: 89: 51:Headquarters 18: 1188:After Enron 921:, formerly 562:CUC Europe 348:References 302:and former 300:Anne Pember 297:comptroller 78:Area served 1616:Categories 934:References 923:Trilegiant 558:March 1995 537:March 1995 459:gift wrap 441:timeshare 304:accountant 250:Travelport 235:Trilegiant 228:Activision 131:CompuServe 127:The Source 29:Trade name 1259:GoUpstate 876:Match.com 860:software 850:July 1997 839:software 812:Hebdo Mag 762:50βˆ’100MIL 757:software 686:software 663:software 637:Rent Net 478:NetMarket 338:Business 295:, former 286:hung jury 123:drop-ship 83:Worldwide 1192:Archived 1171:Archived 1118:Archived 1106:Archived 1036:Archived 913:See also 691:1,060MIL 668:1,140MIL 335:Company 71:Domestic 1093:archive 1091:Fortune 880:dating 778:dating 739:4.85MIL 549:22.5MIL 341:Value ( 246:Realogy 224:Vivendi 197:Cendant 139:Prodigy 117:History 39:Founded 1155:Forbes 1070:  821:440MIL 734:books 716:375MIL 606:225MIL 147:Delphi 1642:Fraud 1544:Wired 1296:AdAge 793:NUMA 528:20MIL 464:31MIL 387:30MIL 366:50MIL 332:Date 220:Havas 143:GEnie 1602:CNET 1582:CNET 1068:ISBN 903:5MIL 645:3MIL 615:1996 487:1MIL 432:1992 396:1988 375:1985 354:1985 256:and 214:and 183:and 164:and 145:and 101:and 42:1973 343:USD 260:." 210:), 1618:: 1599:. 1579:. 1561:. 1541:. 1521:. 1501:. 1481:. 1461:. 1441:. 1421:. 1401:. 1381:. 1361:. 1350:^ 1338:. 1318:. 1305:^ 1293:. 1275:. 1257:. 1246:^ 1234:. 1214:. 1203:^ 1153:. 1141:^ 1113:- 1089:, 1046:^ 1020:- 995:. 982:^ 974:, 959:, 901:$ 883:β€” 863:β€” 842:β€” 819:$ 799:β€” 781:β€” 760:$ 737:$ 714:$ 689:$ 666:$ 643:$ 625:β€” 604:$ 586:β€” 568:β€” 547:$ 526:$ 506:β€” 485:$ 462:$ 444:β€” 424:β€” 406:β€” 385:$ 364:$ 345:) 252:, 248:, 230:. 141:, 137:, 1157:. 1076:.

Index

Trade name
United States
United States
International
Domestic
Worldwide
Stamford, Connecticut
Kirk Shelton
Walter Forbes
Securities and Exchange Commission
accounting scandal
drop-ship
The Source
CompuServe
America Online
Prodigy
GEnie
Delphi
electronic commerce
Reader's Digest
Eckerd Drugs
Morgan Stanley
Sierra On-Line Inc.
Davidson & Associates Inc.
HFS Incorporated
Cendant
Federal Trade Commission
Blizzard Entertainment
Knowledge Adventure
Gryphon Software

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