Travel + Leisure Settles SEC Charges Over Misleading Loan Disclosures
TNL is trading near its 52-week low of $58.07 (6.8% above the low).
Summary
Travel + Leisure agreed to pay a $975K civil penalty to settle SEC allegations that it misled investors by removing delinquent loans from its portfolio through the right of rescission rule between 2019 and 2021. The SEC claims the company reversed 2,900 loans totaling about $77M, including $34M in defaults, which materially improved its reported loan loss provision and percentage. The company also allegedly set internal targets for rescissions to meet public guidance. TNL did not admit wrongdoing. This is the first report of the settlement and adds a regulatory overhang to the stock, though the penalty is modest relative to the company's size.
At the time of this announcement, TNL was trading at $62.01 on NYSE in the Trade & Services sector, with a market capitalization of approximately $3.8B. The 52-week trading range was $58.07 to $81.00. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.