French Court Fines Edgar Bronfman Jr. $6.7 Million; Bronfman Plans Appeal
January 21, 2011 at 6:45 AM (PT)
WARNER MUSIC GROUP CEO EDGAR BRONFMAN JR. has been fined $6.7 million by a French court for misleading investors about VIVENDI while he was serving as a top executive there.
THE ASSOCIATED PRESS reports, "The court also convicted former high-flying VIVENDI CEO JEAN-MARIE MESSIER of misusing company funds and handed him a three-year suspended prison sentence. BRONFMAN was convicted of 'transmitting false or misleading information' about VIVENDI. He was given a 15-month suspended sentence as well as the fine."
Bronfman Will Appeal
BRONFMAN quickly responded, telling WMG that he intends to appeal TODAY's trial court decision. Under French law, the fine is suspended, pending the final outcome of the case.
BRONFMAN remarked, "I am disappointed that the Court differed with both the PARIS public prosecutor and the lead civil claimant in the case, APPAC, who both took the position that I should be acquitted. I will appeal TODAY'S decision to the PARIS COURT OF APPEAL and continue to vigorously defend myself against this charge. As I have consistently stated, my trades were proper."
WARNER Chair/Executive Governance & Nominating Committee SCOTT M. SPERLING said, "The Board of Directors is disappointed with the decision in this matter, and fully supports Mr. BRONFMAN as he appeals this verdict."