The U.S. Securities and Exchange Commission (SEC) announced on Monday the distribution of more than 48 million U.S. dollars to more than 12,000 defrauded Vivendi Universal investors.
"Today we are able to provide financial remediation to investors who were misled by Vivendi's false financial reporting," said David Nelson, Regional Director of the SEC's Miami Regional Office in a statement.
"I am particularly gratified that we have been able to identify and help investors not just in this country, but overseas as well," he added.
The SEC filed a settled enforcement action in December 2003 against Vivendi, its former CEO Jean-Marie Messier, and its former CFO, Guillaume Hannezo, alleging violations of the antifraud and other provisions of the federal securities laws.
Among other things, the commission alleged that the defendants engaged in antifraud violations by making misleading statements about Vivendi's financial condition.
According to the SEC's complaint, the defendants engaged in misconduct that disguised Vivendi's cash flow and liquidity problems, improperly adjusted accounting reserves to meet earnings targets, and failed to disclose material financial commitments.
As part of their settlement, which was without admitting or denying the SEC's allegations, the defendants agreed to certain financial relief.
Vivendi agreed to pay a 50 million dollar civil money penalty and disgorgement of 1 dollar. Messier agreed to pay a 1 million dollar civil penalty and disgorgement of 1 dollar, and Hannezo agreed to pay disgorgement and a civil money penalty totaling more than 250,000 dollars.
The Fair Funds being distributed Monday come from all of those financial payments. In addition to that relief, Messier also agreed to forfeit a severance package of about 21 million euros.
Of the 12,115 investors receiving checks, approximately 5,300 are from the United States or receiving claims in dollars. The remaining 6,800 claimants are from 15 countries, including more than 3,300 claimants who bought shares on the Paris Stock Exchange. They will receive checks in Euros, said the SEC.
Source:Xinhua
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