Edgar Bronfman, Jr., the CEO of Warner Music Group, may have illegally sold shares of Vivendi using insider information, according to preliminary charges filed by French authorities. (Vivendi Universal is based in France.) The charges are apparently part of a larger investigation into alleged wrongdoings at Vivendi Universal.
The charges claim that Bronfman sold Vivendi shares in January 2000 using insiderinformation, in advance of the merger that was to occur in June of that year. At the time of the merger, Bronfman wasthe Seagram CEO. After the merger, he became executive vice presidentof the combined entity.
In response to the allegations, Bronfman's lawyer said his client "has cooperated fully with French inquiries into Vivendi Universal share transactions," and that "Mr. Bronfman's transactions have at all times been proper and at no time did he contravene any French laws or regulations."
Several other former Vivendi executives face similar charges.
More bad news for Bronfman: the French apparently only file preliminary charges if "an investigating judge has determined there is strong evidence to suggest involvement in a crime."
(ap)
