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Realogy haunted by Cendant’s past

Company on hook for legal judgements, back taxes

More than three years after being spun off as an independent company, Realogy Corp. remains saddled by an agreement to cover the lion's share of some unresolved liabilities of its former parent, Cendant Corp., including legal judgments and a potential $476 million back-tax bill. In a regulatory filing detailing the company's second-quarter results, Realogy said it recently paid $62 million of a $98 million legal judgment against Cendant, as required by separation and distribution agreements between Cendant and three companies it spun off in 2006. Cendant became Avis Budget Group Inc. after the reorganization. The judgment was the result of a lawsuit alleging breach of contract and fraud in Cendant's 1998 acquisition of Credentials Services International, a direct marketer of credit report information to consumers. The deal closed just before Cendant reported potential accounting irregularities in a merger with CUC International Inc., Realogy said. "This case and its unfortunat...