LVMH Moët Hennessy Louis Vuitton is strongly denying allegations that it acquired shares in Hermès International that were unlawfully taken from Nicolas Puech, a fifth-generation Hermès heir. Puech has initiated a civil lawsuit against LVMH chairman and CEO Bernard Arnault, his holding companies, and his group, seeking billions of dollars in damages. This lawsuit, filed on May 15 at the Paris judicial court, estimates the value of 6 million Hermès shares once belonging to Puech at around $16.26 billion today.
The accusations are linked to LVMH's surprise acquisition in 2010 of a significant stake in Hermès through cash-settled equity swaps, which led to a protracted legal battle settled in 2014. LVMH views the current claims as a "clearly coordinated media campaign" and has threatened legal action to defend itself, asserting it has never misappropriated Hermès shares or holds any "hidden" shares. The company points out that Puech has turned to French courts after being dismissed by the Swiss judiciary.
Puech, who was once among Hermès' largest individual shareholders, was at the center of the earlier LVMH-Hermès dispute when he refused to join other family members in pooling their shares to protect the company from a potential LVMH takeover. He claims his former wealth manager, Eric Freymond, sold his 5.8% stake in Hermès without his knowledge or permission. Puech's allegations are also part of a separate ongoing criminal investigation in France into the alleged disappearance of his fortune, though Arnault and his companies have not been formally investigated in that probe.
LVMH's statement emphasizes its history of refraining from public controversy despite unfounded criticism, but states it will take necessary action to assert its rights given the recent articles reiterating what it calls baseless allegations about its acquisition of the Hermès stake more than 15 years ago. The ongoing legal actions and public statements highlight the renewed tensions between the two luxury giants and their respective stakeholders.
