Hermes got their wish!
The Paris prosecutor's office has opened a preliminary investigation into LVMH, after the family-owned label accused them of insider trading, collusion and manipulating stock prices.
Based on their investigation, the prosecutors will either drop the case or hand it over to an investigating judge.
In case you've lost track, LVMH's stake in Hermes shares has slowly grown over the past two years from 17%, to 20% and now, 22.3%.
The French stock market regulator, AMF, started their own investigation into LVMH in 2010, when they revealed they acquired a 17% stake in Hermes through cash-settled equity swaps, which "allowed it to circumvent the usual market rules".
AMF has yet to determine whether or not LVMH respected market rules, but they're also being asked to weigh in separately on Hermes' complaint.
No word on when the prosecutors will make their decision, but when they do we'll let U know!
[Image via Retna LTD.]
Tags: gerard rameix, hermes, insider trading, legal matters, louis vuitton, lvmh, moet hennessy, paris prosecutor