Vivendi Faces Damages in Investor Suit

NEW YORK: Vivendi is planning to appeal Friday’s court ruling that found the Paris-based company liable for misleading investors about its financial condition between 2000 and 2002.

A ruling in the class-action trial brought by investors was delivered on Friday in the U.S. District Court for the Southern District of New York. The jury found that several public statements made by Vivendi between October 30, 2000, and August 14, 2002, violated U.S. securities laws. The French-based conglomerate said it "strongly disagrees with the findings against the company, which the company believes are contrary to the facts and the law, in particular with respect to an alleged hidden liquidity risk."

The amount the company will be asked to pay in damages has not yet been determined. Vivendi says there are many grounds for appeal, including the court’s decision to include French shareholders in the class and its rulings on jurisdiction and the plaintiffs’ method of proving and calculating damages. "Furthermore, Vivendi believed, and continues to believe strongly, that it did nothing wrong and that this case raises significant legal issues for foreign corporations doing business in the United States that need to be definitively resolved. Vivendi remains confident concerning the ultimate confirmation of the legal integrity of its actions and its public statements."

Meanwhile, Vivendi’s former chief executive, Jean-Marie Messier, is not liable for the period of the suit, reports indicate.