French Judge to Question LVMH Chief Bernard Arnault Over Missing Hermes Shares
French investigators intend to question LVMH chief Bernard Arnault over the disappearance of six million Hermes shares valued at eight billion euros. The probe stems from a complaint by heir Nicolas Puech regarding his former wealth manager.
The mysterious disappearance of millions of Hermes shares has escalated to the highest levels of the French luxury industry. According to an investigative report published by Le Monde on October 29, the investigating judge handling the case intends to summon Bernard Arnault, the head of the LVMH luxury conglomerate and one of the world's wealthiest individuals, for questioning.
The investigation centers on the fate of approximately six million Hermes shares that reportedly belonged to Nicolas Puech, an 83-year-old descendant of the fashion house's founding family. Puech claims that the shares, representing about 5.7% of the company's capital, were transferred without his knowledge. Based on current market valuations, this stake is valued at approximately 8 billion euros. Puech states that he only discovered in 2022 that the shares were no longer under his control, attributing the loss to his former Swiss wealth manager, Eric Freymond, who managed his financial affairs for years and passed away in 2025.
Expanding Legal Scrutiny and Corporate Denials
According to the investigation, four lawyers, a notary, and a businessman have already been placed under formal investigation in connection with the case. Reports also indicate that a senior LVMH executive admitted during testimony that the identity of shareholders acquired through banks was not verified. Investigators are currently examining financial ties between Freymond and individuals acting on behalf of the luxury group.
Another detail revealed involves a 2019 agreement under which LVMH paid 10 million euros to Puech and 10 million euros to Freymond. These payments raise additional questions regarding the relationship between the parties, though they do not constitute standalone evidence of illegal activity.
Historical Context and Market Performance
The background of the case dates back to a fierce battle for control between two of the world's most renowned luxury houses. In 2010, LVMH revealed it had accumulated roughly 17% of Hermes shares, later increasing its stake to about 23% through various transactions and financial derivatives. This maneuver triggered fierce opposition from the Hermes family, who viewed it as a hostile takeover attempt.
In 2013, LVMH was fined 8 million euros by the French Financial Markets Authority for violating disclosure obligations related to building the stake. The standoff ended in 2014 with an agreement under which the group parted ways with its Hermes shares. Last September, Reuters reported that an agreement had already been signed in 2002 between LVMH and Freymond to purchase Hermes shares from Puech and other heirs. LVMH maintains that the agreement was never executed and that Freymond's authority to act on Puech's behalf was unclear, denying any involvement in taking or holding hidden shares.
Puech has filed a civil lawsuit against LVMH, Arnault, and other parties, reserving the right to seek up to 14 billion euros in damages should fault be established. To date, no charges have been filed against Arnault or LVMH, and the allegations against them remain unproven.
Financial Resilience Amid Market Volatility
These legal developments coincide with a challenging period for Hermes investors. As of November 2, the fashion house's share price trades around 1,296 euros, marking a decline of approximately 39% since the beginning of 2026. The company's market capitalization currently stands at roughly 137 billion euros.
Despite the weakness in its stock price, Hermes' underlying business operations continue to expand. The company reported on October 22 that third-quarter revenue reached approximately 4.1 billion euros, representing a 4.3% increase at constant exchange rates compared to the same period last year. For the first nine months of the year, revenue totaled about 12.26 billion euros, reflecting a 5.5% growth at constant currencies.
Hermes' annual results are scheduled for release on February 12, 2027. Meanwhile, attention remains focused on the ongoing legal investigation and whether authorities can trace the missing shares, more than two decades after the initial corporate rivalry between the two luxury empires began.
