Vivendi is a large media conglomerate with a bit of a controversial history. In the early 2000s, it was accused of violating federal securities laws. Shareholders were not pleased, and they sued Vivendi for the ordeal. The verdict in that case came down in 2010, and it found the company liable for $49.8 million. Vivendi appealed the verdict, and it was recently rejected by the 2nd U.S. Circuit Court of Appeals.
This has been a long running legal saga for both Vivendi and its shareholders at the time of the securities violation. We bring this up in relation to a post we wrote last month about a shortage of judges that can handle business litigation cases.
Cases that involve business litigation, contract disputes, federal violations and financial discrepancies — or any combination of these — are incredibly complex and even in perfect legal conditions would take a long time to sort out. The courts have their backlog they have to get through, and it simply takes time for any single case to be heard.
With that said, it behooves companies involved in this litigation to be prepared for a lengthy legal battle — and to have the legal counsel on their side to get them through this litigation. You have to keep operating your company and making critical decisions for the betterment of your company even while the litigation is ongoing. Having an experienced legal advisor on your side during these difficult times can be of tremendous assistance.
Source: Reuters, “Vivendi loses U.S. appeal in shareholder lawsuit,” Sept. 27, 2016