Long-running suit stems from Vivendi’s 2001 purchase of Liberty’s stake in USA Networks
French media giant Vivendi agreed to pay billionaire mogul John Malone‘s Liberty Media $775 million to settle a decade-old lawsuit related to USA Networks.
The settlement, announced Friday, puts an end to the suit stemming from Vivendi’s 2001 purchase of Liberty Media’s stake in USA Networks.
Liberty had claimed it was misled by Vivendi the value of its shares used in the purchase, during a liquidity crisis at the company. In 2013, a jury awarded Liberty €945 million.
In a statement about the deal, Vivendi continued to argue it did nothing wrong, saying the settlement “should not be construed as a concession by Vivendi of the validity of any of Liberty Media’s claims, or as an admission of any wrongdoing.”
Liberty Media expects to net after-tax proceeds of about $420 million in cash, and Vivendi said it would have a positive net cash impact of about €270 million, since the settlement is less than the jury award.