Tuesday October 6, 12:41 AM
Vivendi, Messier in New York trial over financial reports
NEW YORK (AFP) - Jury selection got underway Monday in a shareholders' lawsuit against Vivendi (Paris: FR0000127771 - news) and its former chief Jean-Marie Messier, who are accused of making false statements about company finances.
If they are found guilty, the parties accused could face billions of dollars in damages.
The accused -- Vivendi, Messier (who resigned in 2002) and Guillaume Hannezo, an ex-finance chief who also resigned -- are charged with breaking US federal securities laws in statements from October 2000-August 2002, court documents show.
Messier, who arrived in court after midday, was introduced to the jurors in a New York federal court, before slipping away an hour later without having said a word, with his companion Christel Delaval.
Arriving in court, he appeared rather relaxed and headed to greet Jean-Rene Fourtou, the current head of Vivendi's oversight body. Hannezo also was in court.
The case dates back to 2000-2002 after the merger with Seagram and Canal Plus (Paris: FR0000125460 - news) , which at the time made Vivendi one of the top global media groups. Vivendi Universal reported upbeat sales and profits even as the group was in the midst of a major cash crunch.
Shareholders' attorneys say the company broke US accounting regulations by including earnings from companies in which it did not have a controlling stake.
Messier had to leave VU in July 2002 after the company lost 13.6 billion euros compared to the prior year.
Judge Richard Holwell told jurors the case should last two to three months.
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