On Tuesday, closing arguments began in the rare securities class action trial against Vivendi (previously discussed here). Vivendi’s lawyers denied allegations that the company misled the market and claimed that Vivendi routinely reported information regarding its financial performance, AmLaw Litigation Daily reports.
In July 2002, Vivendi’s banks threatened to discontinue lending to the company if Jean-Marie Messier continued as CEO. The company’s attorney argued that Vivendi disclosed this demand. Additionally, counsel noted that this issue did not create a liquidity crisis because it was resolved quickly, shortly after Vivendi replaced its CEO.
Jury deliberations are scheduled to begin later this week.