French media giant Vivendi Universal SA is being sued in a case alleging shareholder fraud by the company and its former CEO. US Law firm Wolf Haldenstein Adler Freeman & Herz LLP said it filed a class-action lawsuit in the US District Court for the Southern District of New York. The suit is on behalf of purchasers of the securities of Vivendi Universal between 11 Feb and 3 Jul. As part of its move to trim debt, Vivendi Universal decided weeks ago to sell a stake of up to 15.6 percent in water utility company Vivendi Environnement. The process diluted Vivendi Universal's holding in Vivendi Environnement from 63 percent to 42 percent and to help Vivendi Universal shave EUR 1.7 billion off its debt of EUR 33.4 billion.

Source: WaterTech Online, 22 Jul 2002