Hermès heir sues one of the world’s richest people over $25 billion in missing shares
The Hermès heir is suing the LVMH conglomerate and its billionaire CEO Bernard Arnault in a Paris civil court, seeking nearly 14 billion euros ($24.8 billion) in compensation for his allegedly lost stake in the Birkin bag maker.
Nicolas Puech alleged that his former asset manager, the late Eric Freymond, sold his shares in Hermès International SCA to Arnault without his knowledge, as Arnault was trying to buy out his rival. In May, Freymond filed a civil lawsuit against LVMH Moët Hennessy Louis Vuitton and Arnault, according to sources familiar with the matter who spoke on condition of anonymity.
Nicolas Puech (pictured) claimed former asset manager the late Eric Freymond sold his shares in Hermès International SCA to Arnault without his knowledge.
According to the Bloomberg Billionaires index, Arnault is the seventh richest person in the world, with a net worth of approximately US$200 billion ($303 billion).
Case – first reported by French newspaper Liberation – Adding to the myth of where Puech’s shares are. The fifth-generation heir to one of the world’s largest luxury companies has claimed that he no longer owns nearly six million shares of Hermès, which he owned and whose management he handed over to Freymond. Sources added that Puech estimated the value of the shares lost when he filed the civil suit was around €14.3 billion.
Although Puech has filed a civil suit, he is first asking police in a parallel lawsuit to determine who may be responsible for the missing shares, the people said. Therefore, Hermès’ heir requested a postponement of the civil case as the criminal investigation progressed.
The latest legal development comes 15 years after Arnault revealed that LVMH had secretly established a stake in Hermès. The descendants who control Hermès banded together and successfully fought off the unwanted advances. The fate of Puech’s shares was never clarified, even after Arnault agreed with the Hermès clan in 2014 to buy back a 23 percent stake in LVMH.
The latest legal development comes 15 years after Arnault revealed that LVMH had secretly established a stake in Hermès.Credit: Bloomberg
LVMH denied that Puech misappropriated his shares in establishing his shares.
The puzzle deepened when Puech accused Freymond of misusing his possessions. While the allegations were denied by Swiss authorities last year, French investigators have their own criminal case.
