Vivendi Hits Back at USA Lawsuit

Vivendi Universal returned fire at Barry Diller's USA Interactive, saying its lawsuit was "without merit" and a negotiating ploy.

USA Interactive accused Vivendi on Tuesday of reneging on a commitment to cover approximately $620 million in taxes arising from its interest in Vivendi Universal Entertainment, created last year when USA sold its movie and television properties to Vivendi for about $11 billion.

The company, which is seeking buyers for its U.S. holdings to slash debt, added that the lawsuit will "not interfere with our asset disposal program." Vivendi also labeled the suit a ploy to "gain leverage in the negotiations."