NEW YORK, Aug. 27, 2002 (PRIMEZONE) -- According to Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com), which has filed a class action against Vivendi Universal ("Vivendi" or the "Company") (NYSE:V) and Jean-Marie Messier, the Company's former Chairman and Chief Executive Officer, investors who purchased or otherwise acquired the securities of Vivendi during the period from February 11, 2002 through July 3, 2002, inclusive (the "Class Period") have until Monday, September 16, 2002 to seek appointment by the Court as one of the lead plaintiffs in this action.
The Complaint charges that during the Class Period, defendants issued materially false and misleading statements which served to artificially inflate the price of Vivendi's shares. In particular, it is alleged that prior to and during the Class Period, Mr. Messier took Vivendi on an acquisition binge that, according to published reports, resulted in the Company amassing approximately $18 billion in debt as he turned the Company from a water concern into an entertainment powerhouse. Concomitantly, Mr. Messier orchestrated a scheme to conceal the severity Vivendi's liquidity problems stemming from the massive debt load incurred as a result of the acquisitions.
As detailed in the Complaint, Mr. Messier failed to disclose the true contours of Vivendi's cash crisis and his affirmative misrepresentations to the contrary have given rise to an investigation by French authorities concerning whether Mr. Messier disclosed in a timely fashion that the Company was in dire financial straits. Published reports also indicate that Vivendi is engaged in urgent discussions with lenders to secure financing and is both considering and negotiating the sale of assets.
On July 2, 2002, several news services reported that Vivendi's Board had forced Mr. Messier to resign due to, among other things, the drop in the Company's share price and severe debt crisis. Thereafter, on July 3, 2002, the Company, through its new management, published a press release that The Wall Street Journal characterized as a "very different statement that, among other things, acknowledged a short-term liquidity issue." The statement revealed that Vivendi must repay creditors 1.8 billion euros by the end of July 2002 and further disclosed that 3.8 billion euros in credit lines were up for renegotiation. Vivendi's share price collapsed upon these revelations.
If you purchased the securities of Vivendi during the Class Period, you have until Monday September 16, 2002 to ask the Court to appoint you as lead plaintiff for the Class. To serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca