LVMH CEO Bernard Arnault will testify in court in Paris during the trial of former French intelligence chief Bernard Squarcini | Fashion trends

LVMH president and CEO Bernard Arnault is scheduled to testify in a Paris court on Thursday in the trial of former French spy chief Bernard Squarcini. The case shed light on the lengths to which the world’s largest luxury group allegedly went to protect its image. Read also: Bernard Arnault was called the godfather of the Olympic Games. Here’s how he built LVMH’s fortune

About the case

Squarcini, who headed France’s counterintelligence service from 2008 to 2012, was later hired by LVMH as a security consultant and during that time he allegedly illegally collected information on private individuals and violated privacy laws while helping the company fight counterfeits and monitor the left. activists planning to direct protests against the company.

He is also accused of disclosing secret information, interfering with the administration of justice and influence peddling. Squarcini’s lawyers did not immediately respond to a request for comment.

Arnault is not accused of any wrongdoing during the trial after paying a 10 million euro settlement in 2021 to close the investigation into LVMH’s role in the case.

He said Squarcini’s recruitment was carried out by Pierre Gode, his longtime right-hand man at LVMH, who died in 2018, and that he had no knowledge of the information allegedly collected by Squarcini, according to court documents.

Why the issue matters

But the two-week trial has brought the billionaire into the spotlight at a time when his sprawling luxury empire is already struggling with an industry downturn and changes at the highest levels of management.

LVMH paid consulting firm Squarcini Kyrnos €2.2 million for services including allegedly investigating the background of people suspected of counterfeiting luxury goods.

He also allegedly monitored Francois Ruffin, a French activist-turned-politician, and members of his leftist publication Fakir, who were planning to disrupt an LVMH shareholder meeting and preparing their satirical documentary “Merci Patron.”

The film, which won the French César for best documentary in 2017, tells the story of a family that lost their job at supplier LVMH. Bernard Arnault’s lawyer did not immediately respond to a request for comment.