SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  ------------


                                    Form 8-K
              CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                                  ------------


                        January 8, 1999 (January 7, 1999)
               (Date of Report (date of earliest event reported))


                               Cendant Corporation
             (Exact name of Registrant as specified in its charter)


                           Delaware 1-10308 06-0918165
       (State or other jurisdiction (Commission File No.) (I.R.S. Employer
            of incorporation or organization) Identification Number)

                                  6 Sylvan Way
                          Parsippany, New Jersey 07054
               (Address of principal executive office) (Zip Code)





                                 (973) 428-9700
              (Registrant's telephone number, including area code)



                                      None
       (Former name, former address and former fiscal year, if applicable)














Item 5.   Other

On  January 7, 1999,  Cendant  Corporation  (the  "Company")  announced  that it
reached  a  preliminary   agreement  in  principle  with   plaintiffs'   counsel
representing  the class of holders of its PRIDES  securities who purchased their
securities  on or prior to April 15, 1998 to settle their class  action  lawsuit
against  the  Company  through  the  issuance  of a new  "Right" for each PRIDES
security held.

Under the  preliminary  agreement only persons who owned Income or Growth PRIDES
("PRIDES")  at the close of  business  on April 15,  1998  will be  eligible  to
receive a new additional  "Right" for each PRIDES security held. Current holders
of PRIDES will not receive any Rights (unless they also held PRIDES on April 15,
1998).

If the potential settlement proceeds as contemplated, the Company will record an
after tax  charge of  approximately  $220  million,  or $0.26 per  share,  ($350
million  pre-tax)  in the fourth  quarter of 1998.  The  Company  will record an
increase in Shareholders'  Equity of $350 million as a result of the prospective
issuance of the Rights. As a result, the potential  settlement should not reduce
the  Company's  net book value.  In  addition it is not  expected to reduce 1999
earnings per share.  There is no assurance  that a definitive  agreement will be
reached and any such  agreement is subject to court approval and will be subject
to certain conditions. There can be no assurance that the court will approve the
agreement or that the conditions  contained in any definitive  agreement will be
fulfilled. A copy of the press release is attached hereto as Exhibit 99.1 and is
incorporated herein by reference in its entirety.

Item 7.   Exhibits

Exhibit
   No.    Description
- -------   -----------
99.1      Press Release: Cendant  Corporation Announces Preliminary Agreement in
          Principle to Settle PRIDES Securities Class Action Suit for Holders as
          of April 15, 1998, dated January 7, 1999.

                                                       





                                    SIGNATURE



     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.



                                                     CENDANT CORPORATION



                                                     By:  /s/James E. Buckman
                                                             James E. Buckman
                                                             Vice Chairman
                                                             and General Counsel


Date: January 8, 1999







                                                       






                               CENDANT CORPORATION
                           CURRENT REPORT ON FORM 8-K
                 Report Dated January 8, 1999 (January 7, 1999)


                                  EXHIBIT INDEX


Exhibit No.       Description
- -----------       -----------

99.1              Press Release: Cendant Corporation Announces Preliminary 
                  Agreement in Principle to Settle PRIDES Securities Class 
                  Action Suit for Holders as of April 15, 1998, dated
                  January 7, 1999.







                                                           FOR IMMEDIATE RELEASE


        Cendant Corporation Announces Preliminary Agreement in Principle
                  To Settle PRIDES Securities Class Action Suit
                        For Holders as of April 15, 1998


            Settlement Not Expected to Reduce 1999 Earnings Per Share

           Non-Cash Settlement in Form of Tradeable Rights Securities

                   Cendant Would Record Estimated $350 Million
     Before Tax ($220 Million After Tax, or $0.26 per Share) Charge in 4Q98

         Agreement is Subject to Final Documentation and Court Approval


     NEW YORK, NY - January 7, 1999 - Cendant  Corporation  (NYSE:CD)  announced
today that it has reached a preliminary  agreement in principle with plaintiffs'
counsel representing the class of holders of its PRIDES securities who purchased
their  securities  on or prior to April 15, 1998 to settle  their  class  action
lawsuit against the company.

     Under  the  agreement  only  persons  who owned  Income  or  Growth  PRIDES
("PRIDES")  at the close of  business  on April 15,  1998  will be  eligible  to
receive a new additional  "Right" for each PRIDES security held. Current holders
of PRIDES will not receive any Rights (unless they also held PRIDES on April 15,
1998).


                                                   






     If the potential  settlement proceeds as contemplated,  Cendant will record
an after tax charge of  approximately  $220 million,  or $0.26 per share,  ($350
million  pre-tax)  in the fourth  quarter of 1998.  The  Company  will record an
increase in Shareholders'  Equity of $350 million as a result of the prospective
issuance of the Rights. As a result, the potential  settlement should not reduce
the  Company's  net book value.  In  addition it is not  expected to reduce 1999
earnings per share.
     For a period beginning upon  distribution of the Rights and concluding upon
expiration of the Rights,  Cendant will issue a New Income PRIDE or a New Growth
PRIDE to any person who delivers a Right and an existing  Income or Growth PRIDE
security ("New PRIDES").
     The terms of the New PRIDES will be the same as the original  PRIDES except
that the  associated  common  shares will be increased  to lower the  conversion
price from the  current  range of $37 to $48 to a range  determined  immediately
prior to the  distribution  of the  rights so that,  based  upon an agreed  upon
valuation mechanism, the market value of each new PRIDE will exceed the value of
the original PRIDE by $11.71, or, in the aggregate, approximately $350 million.


     The effect of this non-cash  settlement in the form of a Rights issuance is
expected to be to distribute, based upon current market prices, approximately 17
million  shares upon the PRIDES  conversion in February,  2001 which  represents
approximately 2% more shares than are currently outstanding.

     Rights will be  distributed to holders (who do not opt out of the class) on
the later of (a)  immediately  following  final court  approval of the  proposed
settlement;  and (b) Cendant's  being  informed by the  Securities  and Exchange
Commission  that a  registration  statement  covering New Income  PRIDES and New
Growth PRIDES, as discussed below, is effective.

     Application  will be made to list Rights for trading on the NYSE or NASDAQ,
and a "when issued" market is expected to be established.  The rights will trade
for a period of 60 days, after which they will expire.

     There is no assurance  that a definitive  agreement will be reached and any
such  agreement  is  subject  to court  approval  and will be subject to certain
conditions.  There can be no assurance that the court will approve the agreement
or that the conditions contained in any definitive agreement will be fulfilled.

     Statements  about  future  results  made in  this  release  may  constitute
forward-looking   statements  within  the  meaning  of  the  Private  Securities
Litigation   Reform  Act  of  1995.   These  statements  are  based  on  current
expectations  and the current  economic  environment.  The Company cautions that
these statements are not guarantees of future performance. They involve a number
of risks and uncertainties  that are difficult to predict.  Actual results could
differ  materially  from  those  expressed  or  implied  in the  forward-looking
statements.  Important  assumptions and other important factors that could cause
actual results to differ materially from those in the forward-looking statements
are specified in the Company's Prospectus Supplement dated November 24, 1998.

     Cendant is one of the world's foremost providers of consumer and business 
services.  The Company operates in three principal segments: Travel Services,
Real Estate Services and Alliance Marketing.  In Travel Services, Cendant is the
leading franchisor of hotels and rental

                                                   





car agencies  worldwide;  the largest provider of vacation exchange services;  a
leading fleet  management  company;  the UK's largest private car park operator;
and a leading  motorist  assistance  group in the UK. In Real  Estate  Services,
Cendant is the world's largest  franchisor of residential  real estate brokerage
offices,  a major provider of mortgage services to consumers and a global leader
in corporate employee relocation. In Alliance Marketing, Cendant provides access
to insurance,  travel,  shopping,  auto, and other services,  primarily  through
direct  marketing to customers  of its affinity  partners.  The Company has more
than 35,000 employees and operates in over 100 countries.


Media Contact:                                               Investor Contacts:
Elliot Bloom                                                 Denise Gillen
973-496-8414                                                 973-496-7303
                                                             Sam Levenson
                                                             973-496-5023


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