Vivendi's Fraud-On-The-Market Rebuttal Sinks $3.5M Suit

Law360, New York (March 1, 2013, 6:54 PM EST) -- French mass media conglomerate Vivendi SA shook off a $3.5 million investor suit over alleged misstatements and stock price inflation in an unusual victory that turned on its successful rebuttal of the so-called fraud-on-the-market presumption, a tall order for companies to beat.

In the ruling, which followed a two-day bench trial that ended Feb. 19. — the parties waived a jury trial — U.S. District Judge Shira A. Scheindlin tossed the suit by a group of mutual funds and investment advisory plaintiffs affiliated with brokerage company...
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