GLOBAL - Several large pension schemes have expressed an interest in collaborating in a proposed class action case against entertainment giant Vivendi, according to UK firm, Securities Class Actions.
In March 2007, the US District Court in New York ruled to exclude European and other non-US investors, other than people from France, England or the Netherlands, from participation in a Vivendi shareholder suit.
As a result, Nigel Scarrott, a partner in Securities Class Actions, said subsidiaries and affiliates that were not incorporated in one of those countries should seek an alternative remedy to protect their right to a recovery.
Scarrott explained: "The claim arises from a series of false and misleading statements made by Vivendi regarding its financial viability and liquidity, as well as from the improper accounting methods."
Scarrott said: "We have spoken to a number of pension funds in Ireland and Luxembourg and they are interested. I would say there are a lot of pension funds in Luxembourg, Ireland, Scotland, Spain, Italy and Scandinavian countries that would have invested [between] 20 October 2000 and 14 August 2002. If they traded during that period they would have made a loss."
Scarrott claimed Vivendi's stock plummeted 25% during the period mentioned above, creating losses of £9bn.
A spokesperson from Vivendi said the company did not comment on litigation.
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