Topline
Nicolas Puech, a former billionaire and Hermès heir, is suing LVMH and its billionaire founder Bernard Arnault, according to multiple reports, alleging Puech’s wealth manager sold his roughly six million shares in his family’s luxury goods and handbag company without his knowledge—which would be worth over $16 billion now.
Bernard Arnault and LVMH were named in a lawsuit filed by Hermès heir Nicolas Puech.
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Key Facts
Puech sued his former wealth manager Eric Freymond, Arnault, LVMH and holding companies associated with both men, Reuters reported.
The Hermès heir alleges Freymond moved his shares in his family’s company without his knowledge when LVMH began amassing a stake in the Birkin handbag manufacturer over a decade ago.
The lawsuit values Puech’s lost Hermès shares at 14 billion euros, or roughly $16.3 billion, according to Reuters and Bloomberg citing the suit that has not been made public.
Freymond, however, died in July after being struck by a train in Switzerland.
A criminal investigation into Puech’s claims is still underway in France, but only Freymond is currently under investigation, Reuters reported citing the Paris prosecutor’s office.
LVMH did not respond to a request for comment from Forbes, but later told Reuters the company “never, at any time, misappropriated shares of Hermes International,” and also denied holding “any ‘hidden’ shares, contrary to what Mr Nicolas Puech suggests.”
Key Background
Arnault built LVMH into the luxury juggernaut it is today by purchasing up other companies over the last few decades, including cosmetics brand Sephora in 1997 and legacy jeweler Tiffany & Co. in 2021 for $15.8 billion. In 2010, Arnault revealed he had quietly amassed a 23% stake in Hermès, one of his company’s largest luxury rivals. The two companies settled their dispute in 2014 when Arnault agreed to distribute LVMH’s stake to shareholders, but the billionaire’s holding company maintained an 8.5% stake in the company.