Vivendi is claiming a big legal victory after a U.S. judge limited the number of shareholders, which can result in a lawsuit against the company over alleged false financial statements in connection with a mega-merger in 2000.
French media telecommunications and the company said the judge decision would reduce the damage it could potentially face with 80% from a figure of more than $ 9bn (£ 5.5bn).
Jean-Bernard Lévy, Vivendi chief executive, called the decision a "major victory", with the company claims that "more than 80%" of the potential damage is eliminated from the case now. "We are very pleased with today's decision," said Lévy. "It is a significant victory for Vivendi."
The legal, what lawyers for disgruntled investors claimed it could have resulted in the replacement of as much as $ 9.3bn, relates to opinions on the company originates from $ 46bn merger with Seagram Co and Canal Plus in 2000 financial health.
U.S. District Judge Richard Holwell Tuesday dismissed the claims of all buyers of Vivendis ordinary shares, restrict the matter only to investors in the United States, United Kingdom, France and the Netherlands, specifically acquired the company's American Depositary shares between 2000 and 2002. The share price decreased almost 90% in this period.
Vivendi was accused of making false statements about its finances between 2000 and 2002, when the company was called Vivendi Universal. Shareholder requirement is due to a judgment in January 2010 When a New York jury finds Vivendi liable for 57 misleading statements about its financial condition.
In 2000 acquired Vivendi Seagram, which owned firms including Universal Studios, Canal Plus and more than 20 other companies to burden the company with enormous debts. Trade made Edgar Bronfman Jr, who was Vice-President until 2003, Vivendi and now chairs Warner Music group, the largest shareholder in the French company.
January last year a U.S. jury cleared Jean-Marie Messier, former high-flying Vivendi Chief Executive who masterminded a $ 77bn (£ 48bn) acquisition spree in this period, any liability.
In January of this year, however, a criminal law in France convicted Messier for misleading investors during the same period, 2000-02, and fine him € 150,000 (£ 127,000). Bronfman Jr was convicted by the same court of insider dealing and fine € 5 m. Both men said they would appeal against the decision.
Vivendi manages assets including video games company Activision Blizzard, Universal Music Group and the French telecom giant SWISS FRANCS.
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