Sign that the French group takes the class action seriously

Some American lawyers already see "judicial equivalent of Halley's Comet" for its potential drag. The trial of collective action ("class action") brought by Vivendi minority before the District Court in Manhattan began Monday by the constitution of the jury and the first hearings. If it is too early for a prognosis on the outcome of the procedure which is expected to last several months, the opening of the trial is already a significant risk for Vivendi Universal. The French group, who preferred to go to the American judge in considering the use of "unfounded", had until mid-November to respond to the arguments of the complainants. In the meantime critical hearings of the ex-PDG of Vivendi, Messier Jean-Marie, and the current President of the Supervisory Board, Jean-René Fourtou, planned for early November, the parties presented their "opening statements," which give the extent of the issue.

"The defendants have breached their duty of transparency on the growing problems of liquidity of Vivendi." "What they have said to the public on the company was anything but the truth," has launched the lawyer of the complainants, Arthur Abbey, who represents.Clearly, counsel for the minority, representing thousands of investors accuse the French group of concealing the real situation of the company from October 2000 to July 2002, at the time Jean-Marie Messier was forced to resign, and his financial director Guillaume Hannezo, a few days more tard, after the announcement of a loss of half-yearly 12 billion on a background of massive debt. Accusing the leaders of Vivendi of the time to have contributed to inflate artificially more than 80 the value of the title Vivendi and its ADR in New York, investors counsel recalls that Jean-Marie Messier himself had sent to Guillaume Hannezo a "book of warnings" ("The book of Warnings") on the financial risks faced by society.

Colette Neuville assigned

Main novelty: in the offensive of the minority, relayed in France by the former Council of APPAC, Frédéric-Karel Canoy lawyers Jean-Marie Messier and Vivendi Universal have opted for a line of defence "solidarity". "We proving you that the allegations made about Vivendi are simply false", replied counsel for the French group, Paul Saunders. He especially recalled in December 2001, a few months before the collapse of its value on the stock market, Vivendi had still EUR 6 billion of cash and available credit. For him, the fall of valorisation of Vivendi was unrelated to a "liquidity crisis" assumed but a succession of adverse events, since the terrorist attacks of September 11 to Enron and Tyco scandals and the degradation of the memorandum of the company by Moody's. For its part, the Jean-Marie Messier lawyer, Michael Malone, recalled that his client has continued to buy on the market of the securities of the company in January 2002 "at the same time when the complainants imply that he would have committed fraud."

On the "Book of Warnings", the defence says that he is "a mere collection of notes on acquisitions." and the relations of the group with the banksIt welcomes also on six initial grievances of the "class action", only that relating to the communication concerning liquidity risk has been finally accepted by the judge.

In the wake of the "opening statements" and filmed testimony of the Seagram Chairman, Edgar Bronfman, on the divisions within the Council of the time Vivendi, the French group leaders will be given a hearing in early November. Confident, Vivendi considered that there was currently no provision in its accounts place the risk of eventual compensation that counsel for the complainants believe to EUR 2 billion. His surprise, the Adam President Colette Neuville, the initiator of the "class action" at the same time that two French investors Olivier Gérard (descendant of the founding of the General of the waters family) and Gérard Morel, however received yesterday a summons in justice of Vivendi before the Paris TGI for "misuse of process", with a request for 1 million euros in damages and an injunction to abandon collective action under threat of fine of 50,000 euros per day. Sign that the French group takes the "class action" seriously.