An Hermès heir is suing conglomerate LVMH and its billionaire CEO Bernard Arnault in a Paris civil court in a bid to recover about €14 billion ($24.8 billion) for his alleged lost shares in the maker of Birkin handbags.
Nicolas Puech has alleged that his former wealth manager, the late Eric Freymond, sold his shares in Hermès International SCA to Arnault without his knowledge, when Arnault was trying to buy his rival. He filed the civil case against Freymond, LVMH Moët Hennessy Louis Vuitton and Arnault in May, according to people familiar with the matter, who spoke on condition of anonymity.
Nicolas Puech (pictured) has alleged that his former wealth manager, the late Eric Freymond, sold his shares in Hermès International SCA to Arnault without his knowledge.
Arnault is the seventh-richest person in the world with a net worth of around $US200 billion ($303 billion), according to the Bloomberg Billionaires’ index.
The lawsuit — first reported by French daily Libération — adds another twist in the saga of the whereabouts of Puech’s shares. The fifth-generation heir of one of the world’s largest luxury companies has claimed he’s no longer in possession of some six million shares in Hermès he owned and whose management he’d transferred to Freymond. When he filed the civil lawsuit, Puech estimated the lost shares were worth some €14.3 billion, the people added.
Despite filing the civil suit, Puech first wants police to determine who might be responsible for his lost shares as part of a parallel case, according to the people. For that reason, the Hermès heir has requested the civil proceedings be stayed as the criminal investigation progresses.
The latest legal development comes 15 years after Arnault revealed LVMH had stealthily built a stake in Hermès. Descendants controlling Hermès came together and successfully fought the unwelcome advance. The fate of Puech’s shares was never clarified even after Arnault’s 2014 agreement with the Hermès clan to start unwinding LVMH’s 23 per cent stake.
The latest legal development comes 15 years after Arnault revealed LVMH had stealthily built a stake in Hermès.Credit: Bloomberg
LVMH denied that it had misappropriated the shares of Puech when it built up its stake.
The puzzle deepened when Puech accused Freymond of mishandling his holdings. While the allegations were dismissed by Swiss authorities last year, French investigators have their own criminal case.
