VIVENDI SEEKS TO EXCLUDE FRENCH INVESTORS FROM SHARING IN CLASS ACTION DAMAGES
On March 4, 2010, counsel for Vivendi SA argued before judges in a Paris appeals court that French investors should not be permitted to claim damages from the recent jury verdict in a U.S. securities fraud class action trial, in which Abbey Spanier Rodd & Abrams, LLP served as Lead Counsel. Plaintiffs’ counsel estimates that the verdict will entitle investors to recover as much as $9.3 billion, or €6.6 billion. The class of investors who are entitled to recover damages includes persons from the United States, France, England and the Netherlands who purchased or otherwise acquired ordinary shares or American Depository Shares of Vivendi between October 30, 2000, and August 14, 2002 (the "Class Period").
The hearing before the French Appellate Court related to an appeal by Vivendi of a January ruling by a lower court, the Tribunal de Grande Instance de Paris which dismissed Vivendi's complaint and permitted French shareholders to continue to participate as members in the class action. After losing the same arguments in the U.S. courts, Vivendi’s latest appeal is a second attempt in France to exclude French shareholders from participating in the class action. Since many class members are located in France, Vivendi wants to exclude this group in order to reduce the damages that are owed by the company as a result of the verdict.
Alexis Mourre, a French lawyer with expertise in French appellate practice, was retained by Plaintiffs to represent French shareholders in Paris. Mr. Mourre argued at the hearing that French Courts do not have any jurisdiction over a U.S. Court and therefore have no authority to exclude French shareholders from participating in the U.S. class action. Plaintiffs are confident that Vivendi’s appeal is without merit and that French shareholders will remain members of the class certified by the U.S. District court and will be entitled to collect damages pursuant to the verdict.
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