Legal News

Vivendi to Pay $954.6 Million in Damages for Breach of Contract
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

On Monday, a federal jury in New York found that the French entertainment group Vivendi had not performed its part in a contract with Liberty Media Corp in 2003. Vivendi has been ordered to pay an amount of $954.6 million in damages arising from breach of contract.

The federal court jury in Manhattan found that Liberty Media, the U.S. cable operator had a claim of 765 million euros in damages following its lawsuit against Vivendi accusing Vivendi of fraud in a 2001 agreement by which Liberty Media swapped its stock in the USA Network for a stake in Vivendi.

The trial, which ran for four weeks, was presided over by U.S. District Judge Shira Schneindlin. The jury found Vivendi guilty of fraud and breach of contract.

  
What
Where


In a statement issued on Monday, Vivendi said that it “strongly disagrees” with the jury verdict and added, “Vivendi believes that there are many grounds for appeal and continues to believe strongly that it did nothing wrong and will continue to vigorously defend itself in any subsequent appellant proceedings.”

In 2001, Vivendi purchased the USA Network in a deal worth more than $10 billion. The acquisition was part of Vivendi CEO Jean-Marie Messier’s strategy of metamorphosing Vivendi from a utilities firm to one of the largest media companies in the world. As a part of the deal, John Malone’s Liberty Media Corp was given 32 million treasury shares in exchange of its stake in the USA Network, and was given another 5.2 million shares for its holding in a European joint venture with Vivendi.

In an official statement, Liberty Media Corp said that “Liberty is very gratified by the jury verdict and that the jury has found that Vivendi should live up to its contract.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The case is Liberty Media v. Vivendi Universal, U.S. District Court for the Southern District of New York, No 03-2175.





 

RELEVANT JOBS

Labor & Employment Associate

USA-CA-Los Angeles

Fagen Friedman & Fulfrost LLP, an education law firm, has an immediate opening for an entry to mid-l...

Apply now

Business, Facilities, Real Estate, Construction & Energy Associate

USA-CA-Los Angeles

Fagen Friedman & Fulfrost LLP, an education law firm, has an immediate opening for a Lateral Associa...

Apply now

Special Education Attorney (Oakland & Sacramento)

USA-CA-Oakland

Fagen Friedman & Fulfrost LLP, an education law firm, has an immediate opening for a Special Educati...

Apply now

Attorney

USA-MI-Bingham Farms

Excellent opportunity and compensation package for top notch attorney with 6+ years’ experienc...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Private Investment Funds Associate Attorney

USA-TX-Dallas

Dallas office of a BCG Attorney Search Top Ranked Law Firm seeks private investment funds associate ...

Apply Now

Software Patent Associate Attorney

USA-MA-Boston

Boston office of a BCG Attorney Search Top Ranked Law Firm seeks a software patent associate attorne...

Apply Now

Software Patent Agent

USA-MA-Boston

Boston office of a BCG Attorney Search Top Ranked Law Firm seeks a software patent agent. The candid...

Apply Now

SEARCH IN ARCHIVE

To Top