LVMH's Legal Struggle: Bernard Arnault's Courtroom Challenge

LVMH Chairman Bernard Arnault testified in court, claiming ignorance of illegal surveillance conducted by a now-deceased associate, Pierre Gode, a decade ago. The allegations involve Bernard Squarcini, a former French spy chief hired by LVMH. The case highlights LVMH's efforts to protect its image amid legal repercussions and industry challenges.

LVMH Chairman Bernard Arnault faced a Paris court on Thursday, asserting he was unaware of illegal surveillance activities allegedly ordered by trusted associate Pierre Gode nearly ten years ago. The testimony came amid the trial of Bernard Squarcini, a former chief of France's domestic security services, who was later hired by LVMH.

Squarcini is accused of gathering private data unlawfully to aid LVMH in combating counterfeits and monitoring activists targeting the company. Arnault, among the world's wealthiest individuals, is not charged with any misconduct. However, LVMH has previously settled with a 10 million euro payment to conclude a related criminal inquiry.

The trial draws attention to the measures LVMH may have employed to safeguard its reputation. As Arnault responded to prosecutors, he stated that he was not informed of Gode's actions, emphasizing the firm's commitment to legal compliance. The trial coincides with management shifts within Arnault's expansive luxury empire, with his own son present during the testimony.

(With inputs from agencies.)