April 28, 2016
In one of the few securities fraud cases to be tried to judgment, Weil has now successfully defeated a second round of claims against Vivendi by class members, resulting in over $70 million of claims (with interest) being rejected in post-trial proceedings. These claims represent over half the dollar value of the total claims that were filed against Vivendi following a jury trial in 2010.
Here, summary judgment was based on testimony and other evidence demonstrating that two leading investment advisors pursued a strategy that entailed valuing each of the company’s assets and gaining a thorough understanding of the company’s debt structure, and that they were aware of the allegedly concealed liquidity risks.
The two decisions rejecting these claims are significant because, as the court noted, securities fraud class actions in which reliance on share price can be disproved “are as rare as hens’ teeth.”
Please read more information about the prior summary judgment victory in August 2015 here.