Frequently Asked Questions
- What is this case about?
- Please describe the recent jury verdict in the class action in federal court in New York.
- What happens next in the class action, after the jury verdict for plaintiffs?
- How do I know if I am a Class Member?
- I already participated in the Vivendi SEC Settlement, what does this mean for me if I am a Class Member in the class action?
- What is an ADS? What is an ADR?
- I purchased shares of a security other than Vivendi Universal S.A. which, as the result of a merger, was exchanged for Vivendi Universal S.A. between October 30, 2000 and August 14, 2002. Am I considered a class member?
- What is a class action?
- Why is this lawsuit a class action?
- Do I have a lawyer in this case?
This case is about whether the Defendants violated the United States federal securities laws by allegedly making false and misleading statements regarding the financial condition of Vivendi that inflated the share price and caused economic harm to certain investors. The suit asks for money to be paid to the Class, in an amount to be decided by a jury. The Defendants vigorously deny all of the Plaintiffs' allegations and assert that they are not liable to the Class.
2. Please describe the recent jury verdict in the class action in federal court in New York.
On January 29, 2010, the jury verdict in a securities fraud class action trial against Vivendi S.A. will entitle investors to recover as much as an estimated $9.3 billion, or €6.6 billion, according to attorneys for the plaintiffs.
The case was filed in 2002 and has been on trial in federal court in New York since October 5, 2009. The class includes persons from France, the United States, England, and the Netherlands who acquired Vivendi securities during the period October 30, 2000 to August 14, 2002. Plaintiffs alleged that defendants concealed the company’s true liquidity risk during the class period, and investors suffered losses resulting from a liquidity crisis in mid-2002.
“This verdict shows that deserving investors can get just compensation through class actions, even against the strongest opposition. Very few of these cases go all the way to trial, and we are gratified at the outcome,” plaintiffs’ attorneys from the New York law firms Abbey Spanier Rodd & Abrams LLP, Milberg LLP, and Browne Woods George LLP said in a joint statement.
The lead plaintiffs in the case were the Retirement System for the General Employees of the City of Miami Beach and several individuals. Gerard Morel, a retiree from Caen, France, who testified at the trial, commented: “I am particularly proud that French shareholders were included in the class. It is a victory for investors everywhere.” Rick Rivera, pension administrator for the Miami Beach retirement fund, stated: "This case shows that pension funds can play a positive role in making sure the stock market is free of fraud and is fair for all investors."
The verdict was issued on a “per-share” basis. The total recovery amount is based on an analysis by plaintiffs' economics expert assuming all class members submit claims. The amount includes prejudgment interest that may be added by the court. Class members' entitlements will depend on a number of factors, including their purchase and sale dates. A claims procedure, under supervision of the court, will be announced and publicized after the outcome is finalized.
Class members may register at www.vivendiclassaction.com.
3. What happens next in the class action, after the jury verdict for plaintiffs?
The Court will decide on the next steps. Plaintiffs' counsel believe that the Court will establish a procedure, under its supervision, for Class Members to submit claims so they can receive their portion of any recovery. Counsel for defendants have stated that they will oppose claims and will appeal any judgment entered against defendants. Therefore, this process may take a long time before it is completed, and the final outcome is not yet assured.
4. How do I know if I am a Class Member?
If you are from the United States, France, England, or the Netherlands and bought or otherwise acquired ordinary shares or American Depository Shares (ADSs and/or ADRs) of Vivendi Universal S.A. between October 30, 2000 and August 14, 2002 you are a Class Member in this action.
The Vivendi SEC Settlement, which distributed awards in August of 2008, and the Vivendi Class Action are completely separate litigations. You may be eligible to participate in both.
6. What is an ADS? What is an ADR?
These are abbreviations for the type of Vivendi security often purchased by U.S. Investors. ADR stands for American Depository Receipt, which is a negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. Exchange. In this case, one ADR share of Vivendi is equal to one Ordinary Share of Vivendi, and was traded on the New York Stock Exchange under the ticker symbol "V". ADS stands for American Depository Shares, which are similar to ADRs.
ADRs are denominated in U.S. dollars, with the underlying security held by a U.S financial institution overseas, and help to reduce the administration and duty costs on each transaction.
Yes. Any shares of Vivendi Universal S.A. ordinary shares or American Depository Shares (ADSs and/or ADRs) purchased or otherwise acquired during the class period (October 30, 2000 and August 14, 2002, inclusive) by investors from the United States, France, England, or the Netherlands are considered eligible securities.
In a class action, one or more people called Class Representatives sue on behalf of all people who have similar claims (the "Class"). In this case, the Class Representatives are Olivier Gerard, Gerard Morel, William Cavanagh, Bruce Doniger, and the Retirement System for General Employees of the City of Miami Beach. One court resolves the issues for all Class members, except for those who exclude themselves from the Class.
9. Why is this lawsuit a class action?
The Court decided that the lawsuit should proceed as a class action because it meets the requirements of Federal Rule of Civil Procedure 23, which governs class actions in the U.S. federal courts. The Court found that there are common questions of fact and law that predominate over individual questions, that the Class Representatives' claims are typical of Class members' claims, that there are numerous Class members, that the Class Representatives and their lawyers will fairly and adequately represent Class members' interests, and that a class action is a fair, efficient, and superior way to resolve the claims in the lawsuit for investors from the United States, France, England, and the Netherlands. The Court's certification of the Class is not an expression of any opinion by the Court as to the merits of the case.
10. Do I have a lawyer in this case?
The Court approved the New York law firm of Abbey Spanier Rodd & Abrams, LLP, as "lead counsel" for the Class. You will not be separately charged for the services of lawyers representing the Class. If the lawsuit results in a recovery for the Class, the Court will determine the amount of any fees and reimbursement of expenses that may be awarded out of the recovery to lawyers representing the Class. If you want to be represented by your own lawyer, you may hire one to appear for you at your own expense.