Hohey

Accounting fraud or organized, the shareholders of the former Vivendi Universal (VU) and Jean-Marie Messier delivered Tuesday in New York diametrically opposed versions of events of 2000-2002, which led the media group at the edge of the bankruptcy.

First to speak in a river that trial could lead to billions of dollars in damages, the lead lawyer for plaintiffs, Arthur Abbey, accused Vivendi of “lies” and blamed the group’s former CEO, Jean-Marie Messier , of engaging in “magic book”.

“We show that the defendants were not told the truth about the growing liquidity problems” of the group, said Abbey. “Finally as with all the lies, the truth has come out (…) and investors have suffered enormous losses.

Under the watchful eye of Jean-Marie Messier and his former right hand man and chief financial officer, Guillaume Hannezo, counsel projected on a screen copies of emails and handwritten notes exchanged by the two men, showing the willingness of the towards embellishing accounts.

After Mr. Abbey’s Advocate Group (Vivendi short once more in 2006), represented at the hearing by the chairman of its supervisory board, Jean-Rene Fourtou, who was to present his version of events.

Then, Tuesday afternoon or Wednesday, the 12 jurors needed to hear Michael Malone, a lawyer for Mr. Messier, and defender of Mr. Hannezo.

The case dates back to the years 2000-2002, that is to say, the result of the merger with Seagram and Canal Plus had Vivendi Universal one of the largest media groups in the world at that time, VU posted profits and revenues booming, while the group, heavily in debt to finance its expansion, was experiencing a serious liquidity crisis.

Finally, Mr. Messier had to leave the presidency of VU in July 2002, after the company had lost 13.6 billion euros over the previous year.

This is not the first time that Vivendi and its flamboyant former CEO face justice for reporting this time. But this trial in the United States, which should last two to three months, could be more expensive for them if the court orders them to compensate shareholders hurt by the collapse of the title.

The French judicial figure in effect at one million the number of investors who held shares of Vivendi during the period in question, which are all potential victims to compensate.

French investors had complained in September 2002 when the United States, joining forces with investors who had purchased certificates of deposit (ADS) traded in New York. It is this joint action has resulted in this lawsuit in New York.

The idea, according to a French lawyer defending shareholders, Maxime Delespaul, was “to obtain effective compensation” far more difficult to receive in France where the AMF does not repay the shareholders and that the complainants should go Corrections in an effort to obtain financial compensation.

In the United States, where such prosecution is fairly common, plaintiffs generally try to reach a compensation agreement amicably, avoiding their opponent to face a jury verdict popular potentially ruinous.

The number of transactions to two billion dollars to settle the Vivendi case was cited, without which no one confirmed officially.