LVMH fires back at Hermès heir over €10 billion missing fortune

LVMH denied any knowledge of misappropriation of Hermès shares as Paris prosecutors opened an investigation into a missing fortune worth more than €10 billion belonging to heir Nicolas Puech.

"The group was unaware of any misappropriation of Hermès shares when it was building up a covert position in its rival," LVMH said in a statement, responding to what it called unfounded allegations from the 83-year-old descendant of Hermès founder Thierry Hermès.

The Paris prosecutor's office has launched an official investigation against Swiss lawyer Alexander Montavon on suspicion of complicity in breach of trust related to the offshore company Dilico, where he acted as administrator. Investigators are examining whether the structure was used to transfer or conceal control over Puech's Hermès stake, according to Reuters.

The case traces back to 2010, when Bernard Arnault's LVMH unexpectedly disclosed it owned almost 17 percent of Hermès, stunning the luxury industry and triggering a years-long legal battle. France's financial markets regulator AMF fined LVMH €8 million in 2013 for breaching disclosure rules during the stake-building.

Puech said he lost control of his Hermès shares through his former asset manager Eric Freymond, who managed the heir's fortune for more than two decades. Freymond died in July 2025 while under investigation in Switzerland, with local authorities saying they were considering suicide. Puech filed a complaint in Paris accusing Freymond and possible accomplices of breach of trust and misappropriation of assets.

LVMH said it never misappropriated Hermès shares and dismissed the allegations. Montavon declined to comment, referring inquiries to his lawyer.

The dispute adds a new chapter to the rivalry between the two French luxury titans. LVMH, with a market capitalization exceeding €350 billion, is the world's largest luxury conglomerate, while Hermès, valued at more than €200 billion, has long resisted takeover approaches by maintaining family control through a holding structure that concentrates voting rights.

The investigation threatens to reopen one of the most contentious episodes in French corporate history. If prosecutors find evidence linking LVMH to the missing shares, it could trigger regulatory scrutiny and reputational damage for the world's largest luxury group, whose portfolio includes Louis Vuitton, Dior and Tiffany & Co. Hermès may see a defensive premium as investors price in the potential for an unwinding of LVMH's position. The next procedural hearing has not yet been scheduled.

This article is for informational purposes only and does not constitute investment advice.