Lvmh Moet Hennessy Louis’s (OTC:LVMHF) Bernard Arnault has denied knowledge of any alleged spying and intelligence peddling.
What Happened: Arnault, the chief of LVMH, testified in a high-stakes trial on Thursday, denying any knowledge of an alleged scheme to protect the luxury group, reported Fortune.
France’s wealthiest man was called to testify in the trial of Bernard Squarcini, the former head of France’s domestic intelligence agency.
Squarcini is one of ten men on trial, facing charges of using his security contacts for private gain, including obtaining confidential information on behalf of LVMH.
The charges against Squarcini relate to his tenure as the head of the DCRI security service from 2008-2012 and his subsequent return to the private sector, where he largely worked for LVMH as a consultant.
Investigators state that DCRI officers were deployed as early as 2008 to identify a blackmailer targeting Arnault.
Arnault stated in court, “I was completely unaware” of the alleged scheme.
He also denied any knowledge of an attempted blackmail targeting his private life in 2008, for which the DCRI mobilized its agents to identify the blackmailer, the report noted.
The LVMH boss also refuted allegations related to spying on Francois Ruffin, a former journalist and current left-wing lawmaker, and the leftist newspaper Fakir that Ruffin founded.
LVMH had previously settled out of court in 2021, paying 10 million euros in fines, but Arnault and LVMH were never put on trial.
Why It Matters: This trial comes at a challenging time for LVMH, which has been grappling with a decline in revenue. The company’s third-quarter revenue fell by 3%, falling short of analyst forecasts.
The French luxury empire led by Arnault boasts an impressive portfolio of premium jewelry, fashion, and spirits brands. Many of its offerings, particularly those under the iconic Louis Vuitton label, are priced at over $1,000.
This latest downturn has been attributed to sluggish demand from shoppers throughout the year. The trial could potentially add to the company’s woes, depending on the outcome.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
