Vivendi class action lawsuit
February 24 2011, 4:05 pm
Vivendi announced today that Judge Richard Holwell of the United States District Court for the Southern District of New York has dismissed the claims of all purchasers of Vivendi’s ordinary shares and has limited the case to claims of certain purchasers of Vivendi’s American Depositary Shares.
This ruling, which was expected after the decision of the Supreme Court in Morrison v. National Australia Bank Corp., has the effect of eliminating more than 80 percent of the potential damages that could have been awarded following the jury’s verdict against Vivendi in January 2010. Vivendi plans to make a significant reduction in the provisions that it established following the jury’s verdict.
“We are very satisfied with today’s decision”, said Vivendi’s CEO Jean-Bernard Lévy. “It is a substantial victory for Vivendi. Judge Holwell has upheld a position that Vivendi has urged since the beginning of the class action litigation, that claims by shareholders who purchased Vivendi ordinary shares should not be brought before a U.S. court.”
Vivendi will now analyze Judge Holwell’s decision in detail to determine its next steps.
