The Chairman and CEO of LVMH, Bernard Arnault will be testifying at a Paris court on Thursday in the trial of France’s former spy chief, Bernard Squarcini, in a case that has spotlighted the lengths to which the world’s largest luxury group has reportedly gone to protect its image.
Squarcini, had been the head of France’s counter-intelligence services from 2008 to 2012. He was later hired by LVMH as a security consultant, during which time he allegedly, illicitly collected information on private individuals and infringed privacy laws while helping the company fight counterfeits and monitor left-wing activists planning to target the company with protests.
He is also charged with disseminating classified information, interfering with justice and peddling influence.
Arnault is not accused of any crime in the trial after paying a 10 million euro settlement in 2021 to close a criminal probe into LVMH’s role in the case.
He added that the recruitment of Squarcini was organized by Pierre Gode, his longtime right-hand man at LVMH who passed away in 2018, and that he was unaware of the information Squarcini allegedly collected, according to court documents.
The two-week trial has forced the billionaire into scrutiny at a time when his massive luxury empire is already navigating a downturn in the industry and a rearrangement of top management.
LVMH paid Squarcini’s consulting firm Kyrnos 2.2 million euros for services including reportedly searching the background of individuals suspected of faking luxury goods.
He also purportedly monitored Francois Ruffin, a French activist who is currently a politician, and members of his left-wing publication Fakir as they made plans to disrupt an LVMH shareholder meeting and prepared their satirical, documentary film “Merci Patron”.
