Vivendi Chairman:US Class Action Could Cost Company EUR800 Million

French entertainment and telecommunications company Vivendi SA (VIV.FR) said Thursday the class action lawsuit it is fighting in the U.S. could end up costing it EUR800 million.

That figure includes EUR200 million the company has spent in legal costs since 2002, a further EUR50 million in pending legal costs and EUR550 million in potential damages, if Vivendi loses the case, Chairman Jean-Rene Fourtou said at the shareholders' meeting.

Vivendi put aside EUR550 million in its accounts for the fourth quarter of 2009 to cover damages it may have to pay.

In February, a U.S. jury found Vivendi liable for misstatements about its financial health in 2001 and 2002. Damages haven't yet been awarded and attorneys' estimates of the eventual penalty have varied widely. Plaintiffs consist of U.S., French and Dutch investors.

Vivendi is appealing the decision.

The Paris court of appeals Wednesday rejected Vivendi's motion to exclude French shareholders from a class of plaintiffs in the class action suit. The exclusion of French shareholders from the suit would have lowered any eventual damages.

-By Jethro Mullen, Dow Jones Newswires; 33 1 4017 1738; jethro.mullen@dowjones.com

Vivendi (PK) (USOTC:VIVEF)
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