Litigation Releases (Travel + Leisure Co.)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26657 / September 30, 2026

Accounting and Auditing Enforcement No. 4603 / September 30, 2026

Securities and Exchange Commission v. Travel + Leisure Co

., No. 26-cv-62760 (S.D. Fla. filed Sept. 30, 2026)

SEC Files Settled Action Against Travel + Leisure Co. in Connection with Alleged Misleading Disclosures Concerning Certain Performance Measures for its Timeshare Loan Portfolio

On September 30, 2026, the Securities and Exchange Commission filed a settled action against Travel + Leisure Co., the world's largest timeshare company, for making misstatements and misleading disclosures about two undisclosed projects affecting certain performance measures concerning its timeshare loan portfolio.

According to the SEC's complaint, filed in the U.S. District Court for the Southern District of Florida, from October 2019 to February 2021, Travel + Leisure made misstatements and omissions about two projects under which it removed thousands of customer timeshare loans that were already seriously past due or in default from its loan portfolio through the process of rescission. As alleged, Travel + Leisure fully released customers who requested rescissions from their loans, removed from its loan portfolio over 2,900 delinquent or defaulted loans totaling approximately $77 million in loan balances, including roughly $34 million of defaulted loans, and reversed them in its accounting system as if the loans had never been made. By doing so, the complaint alleges, Travel + Leisure materially improved its publicly disclosed loan loss provision and its loan loss provision percentage-both important measures to investors because they reflected how well Travel + Leisure's loan portfolio was performing and how much of that portfolio was estimated to be collectible. The complaint further alleges Travel + Leisure set internal targets for the number of delinquent and defaulted loans it needed to rescind to meet its publicly disclosed guidance for the loan loss provision percentage, and never disclosed the projects or that trends in its loan loss provision had been meaningfully improved by the projects. As a result, the complaint alleges, Travel + Leisure presented a materially misleading picture of the performance of its loan portfolio.

Without admitting the allegations in the SEC's complaint, Travel + Leisure consented to the entry of a final judgment, subject to court approval, that would permanently enjoin it from violating Sections 17(a)(2) and (a)(3) of the Securities Act of 1933 and Section 13(a) of the Securities Exchange Act of 1934 and Rules 12b-20, 13a-1, 13a-11, and 13a-13 thereunder; and order it to pay a civil penalty of $975,000.