Question
The questions that I would like to ask as a shareholder of your company are as follows:
The company has repeatedly been confronted with fraudulent maneuvers to destabilize the financial markets.
The damage suffered by it, its shareholders and third parties is substantial: damaged reputation for the first, severe losses for the second, discredit of the intermediaries who advised the stock, etc.
Faced with these attacks and in relation to the issues and damage suffered, the reaction of the company's managers (expressed astonishment, complaint filed with the market authorities!) appears insignificant and completely disproportionate.
- How does the company's management justify its pusillanimity on these issues?
- Why has it not, for example, initiated criminal proceedings against the perpetrators of these manoeuvres, in particular GOTHAM and its director, who has already been tried and convicted of multiple criminal offences?
- Incidentally, what action has the French Financial Markets Authority (Autorité des Marchés Financiers) taken on the complaint filed and what are its conclusions?
Answer
Following this attack, the Company filed a complaint with the Parquet National Financier, the highest authority in matters of financial crime. The Company has not been faint-hearted in this matter.
As soon as Gotham published the first part of its report on June 22, 2023, VusionGroup issued a press release the same day, following a meeting of its Board of Directors, firmly denying Gotham's unfounded and defamatory accusations, and stating that the Company would provide a detailed response in the next few days. The Company also retained the right to exercise all its rights with a view to taking legal action at a later date, if necessary.
On June 26, 2023, the Company published a detailed answer of almost 15 pages, reviewed with its auditors, factually refuting each of Gotham's false allegations. The evolution of the stock price over the following days clearly demonstrates the confidence shown in us by investors; VusionGroup’s stock price thus recorded an increase of +15.80% at the close of trading on June 26, 2023, followed by an increase of +19.48% at the close of trading on June 27, 2023.
Eager to protect its rights against these unfounded attacks, the Company indicated on June 28, 2023 that it had instructed its legal advisers to alert the French Financial Markets Authority (Autorité des Marchés Financiers) to the numerous breaches of regulations committed by Gotham City and to initiate all necessary proceedings to defend its interests, including before the French Financial Prosecutor's Office (Parquet National Financier) for disseminating false and misleading information.
In this same press release, the Company confirmed that its auditors (Deloitte and KPMG) had issued a certificate to the Company confirming the validity of the accounting treatment adopted by the Company with regard to the transactions with BOE, which were the subject of false allegations by Gotham.
Following the publication by Gotham on July 7, 2023 of the second part of their report, the Company again reacted immediately, indicating that a response would be forthcoming in the next few days and confirming that it had notified the French Financial Markets Authority of the numerous breaches of regulations committed by Gotham City and had lodged a complaint with the French Financial Prosecutor's Office, in particular for disseminating false and misleading information.
Following the publication of this press release, VusionGroup's stock price once again reflected investor confidence, rising by 31.60% at the close of trading on July 7, 2023.
On July 10, 2023, the Company finally published a detailed answer of almost 15 pages to the second part of Gotham's report, reviewed with its auditors, factually refuting each of Gotham's false allegations.
The Company intends to continue to vigorously defend its interests against these attacks, which have no other aim than to depress its stock price in the sole speculative interest of short-sellers, thereby seriously damaging all the Group's stakeholders, in particular its stockholders, who have faithfully supported the Group's growth strategy these past few years.
To date, the proceedings before the French Financial Prosecutor's Office are still ongoing and are being actively and regularly monitored by the Company and its advisers. The Company reserves the right to initiate other proceedings against Gotham, particularly if its manoeuvres were to be repeated. We will of course keep the market informed of developments in these proceedings and would like to thank all our stockholders for their support over recent months.