LVMH chief Bernard Arnault to testify in France spy trial

PARIS (Reuters) - LVMH Chairman and CEO Bernard Arnault is set to testify at a Paris court on Thursday in the trial of France's former spy chief Bernard Squarcini, a case that has cast light on the lengths to which the world's biggest luxury group has allegedly gone to protect its image.

Squarcini, who headed France's counter-intelligence services from 2008 to 2012, was later hired by LVMH as a security consultant, during which time he allegedly illegally collected information on private individuals and violated privacy laws while helping the company fight counterfeits and monitor left-wing activists planning to target the company with protests.

He is also charged with leaking classified information, interfering with justice and peddling influence.

Squarcini's lawyers did not immediately respond to a request for comment.

Arnault is not accused of any wrongdoing in the trial after paying a 10 million euro settlement in 2021 to close a criminal probe into LVMH's role in the case.

He has said that the recruitment of Squarcini was conducted by Pierre Gode, his longtime right-hand man at LVMH who died in 2018, and that he was unaware of information allegedly collected by Squarcini, according to court documents.

However the two-week trial has thrust the billionaire into the spotlight at a time when his sprawling luxury empire is already navigating a downturn in the industry and a reshuffling of top management.

LVMH paid Squarcini's consulting firm Kyrnos 2.2 million euros for services including allegedly searching the background of individuals suspected of counterfeiting luxury goods.

He also allegedly monitored Francois Ruffin, a French activist who is currently a politician, and members of his left-wing publication Fakir as they planned to disrupt an LVMH shareholder meeting and prepared their satirical, documentary film "Merci Patron".

The film, which won the French Cesar award for best documentary in 2017, follows a family that lost their jobs at a supplier to LVMH.

Bernard Arnault's lawyer did not immediately respond to a request for comment.

(Reporting by Mimosa Spencer and Juliette Jabkhiro; Editing by Stephen Coates)