New York: Vivendi, the Paris-based owner of the world's largest music company, acted recklessly and inflated its shares, a jury ruled in finding that the company misled investors 57 times from 2000 to 2002.
Investors may recover $9.3 billion, the winning law firm said on Saturday after the verdict in the class-action suit in New York. Paul Saunders, a lawyer for Vivendi, said damages couldn't be determined. Vivendi said it will appeal.
"This is the largest securities class action going to verdict ever," Arthur Abbey, an investors' lawyer, said in an interview. "We had 57 statements that we claimed were false, and the jury found that 57 statements were false."
The Manhattan federal court jury found that Vivendi misled investors with upbeat statements that hid a liquidity crisis.
Only about six federal class-action, or group, securities suits have gone to trial since 1995, Saunders said earlier. Most are settled or dismissed.
Lawyers for investors said more than one million shareholders are covered by the case, which went to trial in October.
Abbey said immediately after the verdict that the liability might reach $4 billion (Dh14.68 billion) if every shareholder submitted a valid claim. Later Saturday, his New York-based law firm, Abbey Spanier Rodd & Abrams, issued a statement saying the verdict "will entitle investors to recover an estimated $9.3 billion".
"The total recovery amount is based on an analysis by plaintiffs' economics expert assuming all class members submit claims," the firm said.
"The amount includes prejudgment interest that may be added by the court. Class members' entitlements will depend on a number of factors, including their purchase and sale dates."
Abbey said afterward his first figure was an estimate and "with interest it would be much higher".
