LVMH signed 2002 deal to buy 6% Hermes shares

By the Editorial Team · Friday, September 18, 2026

LVMH is facing a €14 billion lawsuit from Hermès heir Nicolas Puech, who alleges that shares he owned were misappropriated through a 2002 agreement involving his late financial advisor and LVMH’s acquisition efforts. The case exposes deep-rooted conflicts and complex financial arrangements between the luxury groups and could influence control dynamics within Hermès as investigations proceed.

In a legal dispute unfolding in Paris, luxury conglomerate LVMH faces allegations related to the acquisition of shares in the high-end fashion house Hermès, stemming from a 2002 agreement involving Hermès heir Nicolas Puech and his late financial advisor, Eric Freymond. The case brings to light complex questions over the handling and ownership of a nearly 6% stake in Hermès, now valued at around US$10 billion.

Court documents reveal that in 2002, LVMH signed an agreement to purchase Puech’s shares through an arrangement orchestrated with Freymond, who passed away in 2025 in what Swiss authorities ruled a suicide. Between 2001 and 2009, LVMH and a family holding company tied to its chairman, Bernard Arnault, reportedly paid at least US$20 million in fees and commissions to Freymond’s management firm, aiding LVMH in gradually building a significant stake in Hermès.

Puech filed a lawsuit last year in Paris seeking €14 billion (approximately US$16 billion) in damages, alleging that his shares were misappropriated without his knowledge or consent through schemes involving Freymond and others. French prosecutors have also been investigating these claims and are looking into the role of Swiss lawyer Alexandre Montavon, who advised LVMH on the 2002 deal and served on the board of Freymond’s firm. Montavon denies any wrongdoing and maintains he was unaware of unauthorized share sales.

LVMH has strongly denied claims that it tried to acquire Puech’s shares against his will. In court filings, the company stated that it never planned to buy Puech’s stake individually, arguing instead that its strategy was to align with him and other shareholders to influence Hermès collectively. However, legal documents reviewed indicate that the 2002 agreement to buy Puech’s shares was indeed signed, though LVMH contends it was never executed and that the company could not confirm whether the sale was authorized by Puech.

This conflict forms part of a long-standing rivalry between the two luxury groups, dating back at least 25 years. LVMH’s chairman Bernard Arnault shocked the market in 2010 when his group disclosed a 17% holding in Hermès, leading to accusations of a hostile takeover. LVMH eventually agreed in 2014 to sell down its stake, distributing shares to its own investors and agreeing not to purchase more Hermès shares for a period.

Hermès remains largely controlled by family members, including Puech, who holds one of the largest personal stakes. CEO Axel Dumas has expressed skepticism over the chances of recovering Puech’s claimed shares but has emphasized awaiting the criminal investigation’s outcome. LVMH declined to comment on the details of the 2002 agreement or the payments made to Freymond.

The precise fate of Puech’s shares and related financial transactions remains unclear, as investigations continue. The case highlights the intricate and often opaque dealings behind major stakes in luxury firms, involving complex relationships between wealthy family heirs, financial advisers, and corporate actors.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.