CHICAGO, Aug. 22, 2002 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that class action lawsuits are pending in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Vivendi Universal, S.A. (NYSE:V) (Paris Bourse: EX FP) ("Vivendi" or the "Company") between April 23, 2001 and August 13, 2002, inclusive ("Class Period").
It has been alleged that Vivendi and Jean-Marie Messier ("Messier"), the Company's former Chairman and Chief Executive Officer, violated the federal securities laws by issuing a series of materially false and misleading statements to the market, which had the effect of artificially inflating the market price of Vivendi's securities.
Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to Vivendi.
Before and during the Class Period, Messier took Vivendi on an acquisition binge that, according to published reports, resulted in the Company amassing approximately $18 billion in debt as he attempted to turn the Company from a water concern into an entertainment powerhouse. During the Class Period, defendants made misrepresentations and/or omissions of material fact, including the following:
-- Misstating Vivendi's cash position and ability to service its debt
obligations;
-- Misstating Vivendi's earnings in its public filings with the SEC
and elsewhere as a result of failing to record write-downs of
goodwill and other intangible assets associated with, inter alia,
the merger among Vivendi, Seagram and Canal+ long after it had
become apparent that such assets were being carried at values
vastly higher than their true values;
-- Failing to disclose that the exchange ratio for the merger between
MP3.com, Inc. and Vivendi was distorted because of artificial
inflation in the price of Vivendi American Depositary Receipts
("ADRs"); and
-- Failing to disclose that Vivendi had significant off-balance-sheet
liabilities in the form of its undisclosed sale of put options on
tens of millions of dollars worth of Vivendi shares during 2001 in
order to pay for stock options it awarded to executives.
Defendants' positive but false statements, which included a representation that Vivendi was not as susceptible to economic problems as competitors and that the Company had the "highest resiliency and lowest sensitivity to recessionary environment," allowed the Company to complete additional acquisitions in its $100 billion buying spree between 1998 and 2001. Late in June 2002, news leaked from Vivendi that its debt was at alarming levels, causing Vivendi's ADRs to decline in price from $28 to $20. Vivendi's ordinary shares declined in similar fashion. Messier, nevertheless, reassured the market that liquidity was not a problem. That did not stop ratings agencies from continuing to downgrade the Company's debt, which caused the ADRs to decline.
On July 2, 2002, Vivendi's debt was downgraded again and the Company was in danger of default. On the following day, Messier was forced to resign. Vivendi ADRs collapsed upon these revelations, falling to $15-21/32 on July 3, 2002. On July 9, 2002, Bloomberg News reported that the Commission des Operations de Bourse was reviewing statements released by Vivendi to ensure "they abide by our rules." The regulators had raided Vivendi's Paris headquarters as part of an investigation into whether Vivendi had disclosed relevant information to investors in the prior 18 months.
On August 14, 2002, the Company's new management disclosed that Vivendi suffered a $12 billion net loss for the first half of 2002, would take an $11 billion goodwill write-down of depreciated assets, and put aside $3.4 billion in reserves. As a consequence of these revelations, the Company's common stock declined nearly 24%. By midday trading on August 16, 2002, the Company's stock had fallen further and was trading below $10 per share.
If you purchased Vivendi securities during the Class Period and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than September 16, 2002.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.