(AFP/DAMIEN MEYER)
Casino and Rallye have dropped defamation proceedings initiated last year against two minority shareholders of Casino who accuse the group’s former management of financial and stock market manipulation, we learned on Tuesday from reliable sources.
The two companies indicated “to withdraw from the action initiated against the defendants”, notes the Paris criminal court in a judgment rendered at the end of October, of which AFP obtained a copy.
“This procedure no longer has any reason to exist”, then explained to AFP Philippe Palazzi, the new general director of Casino which has been restructured in recent months.
In the spring of 2023, Casino and Rallye, then majority-owned by Jean-Charles Naouri, had sued Xavier Kemlin, the great-grandson of Geoffroy Guichard, founder of Casino in 1898, and Pierre-Henri for “complicity in public defamation”. Leroy, founder of the investor advisory company Proxinvest.
Xavier Kemlin clarified to AFP that he “did not intend to withdraw the proceedings initiated against Jean-Charles Naouri, Rallye and the former board of directors of Casino”, even if they withdrew their appeal against him.
These complaints, which are the subject of an investigation by the PNF, denounce potential price manipulation, dissemination of misleading information, abuse of powers and corporate assets and judgment fraud.
Questions:
1. Can you please provide an overview of the case that involved Casino and Rallye dropping defamation proceedings against two minority shareholders, Xavier Kemlin and Pierre-Henri Leroy? What were the specific allegations being made against these shareholders?
2. How significant is this decision by Casino and Rallye to drop the proceedings? What might have been the motivations behind it?
3. What is the present status of the complaints filed by Xavier Kemlin against Jean-Charles Naouri, Rallye, and the former board of directors of Casino? Can you share more information about these allegations and the ongoing investigation by the PNF?
Section 1: Introduction and Background
4. Can you tell us a bit more about the historical context of the case? How have the allegations of financial and stock market manipulation impacted the companies involved, including Casino and Rallye?
5. What role have minority shareholders played in the recent restructuring efforts within Casino? Have they been able to exert significant influence on management decisions?
Section 2: Legal Aspects
6. What legal recourse do companies typically pursue when facing accusations of financial misconduct? In your opinion, was it unusual for Casino and Rallye to initiate defamation proceedings against minority shareholders?
7. Are there any potential consequences for companies that pursue frivolous or politically motivated legal action against their critics? How do these actions affect public perception of the company’s management practices?
Section 3: Shareholder Perspectives
8. Mr. Kemlin, could you provide your insights on why you are choosing to continue with your own legal proceedings against individual members of the former Casino management team? How do you believe your case will impact future corporate governance in France?
9. Mr. Leroy, how do you view this recent development in the case and the potential implications for investors like yourself who speak out against perceived corporate wrongdoing? Do you feel there is enough protection for minority shareholders under French law?
10. As a professional in the financial sector, how important is it for companies to maintain transpar
