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Note 25. Litigation
Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements | Consolidated
Financial Statements | Statutory Auditors’ Report on the Financial Statements |
Statutory Financial Statements
Trial of Vivendi’s former officers in Paris
In October 2002, the financial department of the Paris Public Prosecutor’s
office (Parquet de Paris) launched an investigation into the publication
of allegedly false or misleading information regarding the financial
situation and forecasts of the company and the publication of allegedly
untrue or inaccurate financial statements for the fiscal years 2000 and
2001. Additional charges were brought in this investigation relating to
purchases by the Company of its own shares between September 1, 2001
and December 31, 2001. Vivendi joined the proceedings as a civil party.
The trial took place from June 2 to June 25, 2010, before the 11th
Chamber of the Paris Tribunal of First Instance (Tribunal de Grande
Instance de Paris), following which the Public Prosecutor asked the
Court to drop the charges against the defendants. On January 21, 2011,
the Court rendered its judgment, in which it confirmed the previous
recognition of Vivendi as a civil party. Messrs. Jean Marie Messier,
Guillaume Hannezo, Edgar Bronfman Jr. and Eric Licoys received
suspended sentences and fines. Messrs. Jean Marie Messier and
Guillaume Hannezo were also ordered to pay damages to shareholders
who are entitled to reparation as civil parties. The former Vivendi
Officers as well as some civil parties appealed the decision. The appeal
proceedings were held from October 28 to November 26, 2013, before
the Paris Court of Appeal. The Public Prosecutor requested a 20-month
suspended prison sentence and a fine of €150,000 for Mr. Jean-Marie
Messier for misuse of corporate assets and dissemination of false or
misleading information, a 10-month suspended prison sentence and
a fine of €850,000 for Mr. Guillaume Hannezo for insider trading, and
a 10-month suspended prison sentence and a fine of €5 million for
Mr. Edgar Bronfman Jr. for insider trading. On May 19, 2014, the Paris
Court of Appeal rendered its judgment. Regarding the acts determined
by the lower criminal court to constitute the dissemination of false or
misleading information, the Court held that these acts did not meet the
criteria for such an offense. The Court upheld the conviction against
Jean-Marie Messier for misuse of corporate assets and he received a
10-month suspended sentence and a €50,000 fine. The Court also upheld
the convictions against Messrs. Hannezo and Bronfman for insider trading
and they received fines in the amount of €850,000 (of which €425,000
is suspended) and €5 million (of which €2.5 million is suspended),
respectively. Finally, the Court set aside the lower court’s order for the
payment of damages (€10 per share) to certain shareholders and former
shareholders of Vivendi (the “civil action”). With regard to Vivendi, the
Court upheld the validity of its status as a civil party to the proceedings,
exonerated it from any responsibility and voided the demand for damages
brought against it by certain shareholders or former shareholders. An
appeal has been filed with the French Supreme Court (Cour de Cassation)
by certain of the defendants and some civil parties.
LBBW et al. against Vivendi
On March 4, 2011, 26 institutional investors from Germany, Canada,
Luxemburg, Ireland, Italy, Sweden, Belgium and Austria filed a complaint
against Vivendi with the Paris Commercial Court seeking to obtain
damages for losses they allegedly incurred as a result of four financial
communications issued by Vivendi in October and December 2000,
September 2001 and April 2002. Subsequently on April 5 and on April 23,
2012, two similar complaints were filed against Vivendi: the first one by
a US pension fund, the Public Employee Retirement System of Idaho,
and the other by six German and British institutional investors. Lastly,
on August 8, 2012, the British Columbia Investment Management
Corporation also filed a complaint against Vivendi on the same basis.
On January 7, 2015, the Commercial Court of Paris appointed a “third
party” responsible for checking the standing of the claimants and
reviewing the documentation provided by them to evidence their alleged
holding of the securities.
California State Teachers Retirement System et al. against Vivendi and Jean-Marie Messier
On April 27, 2012, 67 institutional foreign investors filed a complaint
against Vivendi and Jean-Marie Messier before the Paris Commercial
Court seeking damages for losses they allegedly incurred as a result of the
financial communications made by Vivendi and its former Chief Executive
Officer, between 2000 and 2002. On June 7 and September 5 and 6,
2012, 26 new plaintiffs joined these proceedings. In November 2012
and March 2014, 12 plaintiffs withdrew from these proceedings.
On January 7, 2015, the Commercial Court of Paris appointed a “third
party” responsible for checking the standing of the claimants and
reviewing the documentation provided by them to evidence their alleged
holding of the securities.
can be heard simultaneously. On April 4, 2013, the Court of Appeals
issued an Order granting Vivendi’s motion, agreeing to hear the Liberty
Media case together with the Class Action. Vivendi filed its Notice of
Appeal in the Class Action on January 21, 2015; these two cases will be
heard together by the Court of Appeals.
On the basis of the verdict rendered on June 25, 2012, and the entry of
the final judgment by the Court, Vivendi maintained as of December 31,
2014, the provision in the amount of €944.8 million recorded
as of December 31, 2012.
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