In January, a French prosecutor had recommended that the case be dropped. But yesterday a judge ruled that the trial go forward and reports suggest that Vivendi itself has joined the suit as a plaintiff.
The criminal trial stems from alleged irregularities following the 2000 merger of Seagram and its Universal assets with French water company and industrial conglomerate Vivendi to create media giant Vivendi Universal. The 5 year long probe was launched after a shareholder lawsuit claimed that Vivendi stock had been manipulated and company funds misappropriated.
Bronfman, who was forced out of Vivendi in 2001, is accused of criminal insider trading and selling Vivendi shares that he owned ahead of the public. Following U.S. Security And Exchange Commission rules, WMG filed a public "Report of unscheduled material events or corporate event." The filing and the news surrounding it forced WMG stock down 4.5% in after hours trading.
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