Vivendi: Court Ruling Reduces Potential Damages By More Than 80%
February 23 2011 - 3:36AM
Dow Jones News
Media-to-telecoms conglomerate Vivendi SA (VIV.FR) said
Wednesday the decision of a judge in a U.S.-filed lawsuit, that all
the shareholders who bought shares of the company outside the U.S.
cannot sue Vivendi, will reduce potential damages to the firm by
80%.
U.S. District Judge Richard Holwell said only shareholders who
had bought the shares of Vivendi in the U.S. could take part of a
class-action against the French company.
As a result of that decision, Vivendi said it will reduce
significantly the provisions established for the lawsuit.
"We are very satisfied with today's decision", Vivendi's Chief
Executive Jean-Bernard Levy said. "It is a substantial victory for
Vivendi," he added.
In January 2010, a federal jury in Manhattan found Vivendi was
liable for 57 misstatements about its financial condition in 2001
and in 2002 and that it acted recklessly in connection with those
statements.
The U.S. jury also cleared Vivendi's former CEO Jean-Marie
Messier and Guillaume Hannezo, its former chief financial officer,
of any liability.
At 0804 GMT, shares in Vivendi were up 0.4% at EUR20.32, while
the CAC-40 was down 0.2%.
-By Inti Landauro, Dow Jones Newswires; +33 1 4017 1740;
inti.landauro@dowjones.com