LVMH Battles Billion-Euro Lawsuit: Luxury Leader Denies Claim of Misappropriating Hermès Heir’s Shares
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Luxury conglomerate LVMH has publicly denied allegations that it illicitly acquired shares now valued in the billions of euros from Hermès heir, Nicolas Puech. LVMH has been named in a lawsuit alongside its CEO, Bernard Arnault, and ex-wealth manager Eric Freymond.
The Allegations
Puech has claimed that he was wrongfully deprived of Hermès shares, now worth billions of euros, due to the actions of Arnault, LVMH and Freymond. He has lodged a civil lawsuit against these parties, leading to an ongoing criminal investigation in France.
In response to Puech’s claims, LVMH released a statement stating, “LVMH and its (controlling) shareholder firmly reaffirm that they never, at any time, misappropriated shares of Hermès International, in any way whatsoever or without anyone’s knowledge, and that they do not hold any ‘hidden’ shares, contrary to what Mr Nicolas Puech suggests.”
Puech, previously one of Hermès’ largest individual shareholders, shared in a recent interview that he was unaware of any movement of Hermès shares in his name, purportedly for Arnault’s advantage.
The Investigation
Reports have circulated that Arnault will soon be questioned by investigative judges in Paris. However, no specific date has been provided, and Arnault’s spokesperson has not responded to requests for comment.
The Paris public prosecutor’s office has clarified that, to date, only Freymond has been formally placed under investigation. Neither Arnault nor his companies have been subjected to a formal investigation.
Questions & Answers
What are the allegations against LVMH?
Nicolas Puech, an heir to Hermès, has claimed that LVMH, its CEO Bernard Arnault, and former wealth manager Eric Freymond wrongfully deprived him of Hermès shares worth billions of euros.
Has LVMH responded to these claims?
Yes, LVMH has denied any wrongdoing, stating that they have not illicitly acquired any shares of Hermès International.
Who is currently under formal investigation?
At this time, only Eric Freymond, the former wealth manager, has been formally placed under investigation. The Paris public prosecutor’s office has confirmed that neither Bernard Arnault nor his companies are currently under formal investigation.