Vivendi Chairman:US Class Action Could Cost Company EUR800 Million
April 29 2010 - 6:25AM
Dow Jones News
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
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