French Authorities Investigate LVMH-Linked Misappropriation of Hermes Shares
Investigation Details and Legal Proceedings
By Tassilo Hummel
Background of the Case
PARIS, May 28 (Reuters) - French prosecutors said on Thursday they had placed Swiss lawyer Alexandre Montavon under formal investigation for his alleged role over a decade ago in the misappropriation of millions of Hermes shares for the benefit of LVMH.
French Legal Process
Placing a suspect under formal investigation is a step in the French legal system indicating there is serious evidence against a suspect, but that does not imply guilt.
Key Individuals and Entities Involved
Alexandre Montavon and Dilico
The Paris public prosecutor's office said in a written statement emailed to Reuters that Montavon is suspected of having "participated in the misappropriation of Nicolas Puech's Hermes shares for the benefit of LVMH".
The prosecutors said, without giving further details, that they suspected Montavon was part of the scheme through his role as a lawyer and administrator of an offshore company called Dilico.
Role of Dilico in Share Transfers
Market watchdog AMF has previously said Dilico was used to transfer Hermes shares to banks affiliated with LVMH.
LVMH’s Acquisition of Hermes Shares
Timeline and Corporate Feud
The procedural step shows Paris investigators are actively looking into the circumstances under which LVMH built up its position in rival Hermes, a move LVMH first disclosed in 2010, setting off a years-long corporate feud between the two luxury giants.
Responses from Involved Parties
Montavon said he could not comment, but that he had transferred Reuters' request to his attorney. LVMH declined to comment but referred to a December statement in which it said it had "never misappropriated shares in Hermes, in whatever way". A company named Dilico, listing Montavon as its administrator, was liquidated in 2020, according to Swiss corporate records.
Montavon was placed under formal investigation on the grounds of "complicity in breach of trust" on Wednesday, the Paris prosecutors said.
Civil and Regulatory Actions
Puech’s Lawsuit and Market Watchdog’s Fine
Hermes heir Puech, 83, has sued Bernard Arnault and his LVMH group, among other parties, in a civil case claiming he was deprived of Hermes shares now worth more than €10 billion.
France's market watchdog fined LVMH €8 million in 2013 for failing to properly disclose its stake-building in Hermes, which LVMH at the time called "baseless".
Arnault’s Denial and Puech’s Claims
Arnault has consistently denied allegations he was preparing a takeover of Hermes, one of the world's most valuable luxury brands and a direct rival to LVMH's top brand Louis Vuitton.
Puech, once among Hermes' largest individual shareholders, claimed in a rare interview with French magazine L'Express last year that he had unwittingly lost control of his massive stake.
Criminal Complaint and Related Death
Allegations Against Eric Freymond
In a criminal complaint filed in Paris in December 2023, Puech alleged breach of trust and misappropriation of his assets by his now-deceased former wealth manager Eric Freymond and possible associates.
Death of Eric Freymond
Freymond, who managed Puech's fortune for more than 20 years, died in July 2025 while he was under investigation. Swiss authorities have said they were looking into possible suicide.
(Reporting by Tassilo Hummel; Editing by Lisa Jucca, Kirsten Donovan and Alexander Smith)
