Major Fashion Lawsuit: Hermes Vs. LVMH
It was revealed two years ago that LVMH (Moet Hennessy Louis Vuitton) has taken over a large percentage of Hermes stocks. Recently as of July 10th Hermes filed a compliant stating LVMH manipulated stock prices and inside trading. In October 2010, LVMH acquired 17 percent stake in Hermes by cash settlement. It has since raised its stakes to 22 percent. Though LVMH claims they do not want full control over the maker of the Birkin handbags and silk scarfs. In response, Hermes has vowed to protect itself by contracting a non-listed holding company to protect family owned shares moreover has priority purchasing in remaining shares.
After Hermes filed the compliant, on September 4, 2012, LVMH took Hermes to court on the basis of slander, blackmail, and unfair competition. LVMH claims they have respected the market rules. LVMH says the allegations are false and serve no other purpose than to defame, slander and unlawfully undermine another firm of the same industry. The stock market regulator said back in June that is will launch a public investigation to determine whether the cash settlement was a lawful share buy.
Written By: Brianna Coleman