PARIS — LVMH Moët Hennessy Louis Vuitton on Wednesday hit back at claims that it acquired shares in Hermès International that were allegedly unlawfully taken from Nicolas Puech, a fifth-generation heir of the Hermès family.
The French luxury conglomerate issued a statement after French media reported that Puech was targeting LVMH chairman and chief executive officer Bernard Arnault, his holding companies and his group in a civil suit claiming billions of dollars of damages.
Puech has previously blamed his former wealth manager Eric Freymond for the disappearance of his fortune.
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After initially remaining silent on the allegations, LVMH denounced what it termed “a clearly coordinated media campaign” and threatened to take legal action to defend itself.
The accusations are linked to its surprise acquisition in 2010 of a large stake in Hermès via cash-settled equity swaps. This triggered a protracted battle with Hermès that was settled in 2014 with an agreement to distribute the disputed stake to shareholders.
“Accustomed to unfounded criticism from certain detractors or individuals eager to leverage its high profile for personal gain, LVMH has always refrained from fuelling any controversy, whether through public comments or systematic legal action,” LVMH said.
“However, several recent articles have relayed baseless allegations seeking to reinterpret the circumstances under which LVMH acquired its stake in Hermès International more than 15 years ago,” it added.
“LVMH and its shareholder firmly reiterate that they have never, at any time, diverted shares of Hermès International in any manner and that they hold any no ‘hidden’ shares – contrary to the implications put forward by Mr. Nicolas Puech, who has chosen to turn to the French courts after being dismissed on numerous occasions by the Swiss judiciary,” LVMH said.
“LVMH reserves the right to take any action necessary to assert its rights,” it concluded.
As the single largest family shareholder, Puech was at the center of the LVMH-Hermès battle after refusing to join other family members in locking up all their shares in a nonlisted holding company in order to protect the firm from a potential LVMH takeover.
In an interview with French news magazine L’Express, Puech, 82, said he found out belatedly that Freymond, who committed suicide in July, sold Puech’s shares, representing 5.8 percent of Hermès’ capital, without his knowledge or permission.
The alleged disappearance of his fortune is under investigation in a separate ongoing criminal investigation in France.