Reportedly "the largest securities class action jury verdict in history" tagged Vivendi with potentially $9.3 Billion in Damages. In 57 separate claims, Vivendi was sued for allegedly making misstatements or omitting information that misled shareholders and inflated the company's stock. Associated Press copyrighted story published as "Court Finds Vivendi Liable for Misleading Investors" p. B3, col. 1 (New York Times Nat'l ed., "Business Day" Section, Saturday, January 30, 2010); Richard Verrier, "Company Town/Federal Jury Finds Vivendi Liable in Shareholder Lawsuit" (Los Angeles Times Online, Saturday, January 30, 2010).
The class action lawsuit also named two additional Defendants who were Officers (including the Chief Financial Officer) of Vivendi. The jury's verdict exonerated the individual Defendants and put 100% of the responsibility on Vivendi. New York Times/Associated Press, supra; Los Angeles Times, supra.
The defense expenses incurred by the individual Defendants must have been enormous. This is the kind of lawsuit which gives rise to Insurance Coverage Questions, and it may have already done so. It certainly appears likely that there will be future Insurance Coverage Issues surfacing over the available Director's and Officer's Insurance Coverage as a result of this lawsuit.
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