Luxury and Espionage: The LVMH Controversy Unveiled

LVMH CEO Bernard Arnault is set to testify in a Paris court amid allegations of illegal espionage by former French spy chief Bernard Squarcini. Hired by LVMH, Squarcini is accused of privacy violations while monitoring activists and fighting counterfeits. Arnault denies wrongdoing after a prior settlement.

Bernard Arnault, the Chief Executive of LVMH, will appear in a Paris courtroom on Thursday, set to testify in a high-profile trial. The case involves Bernard Squarcini, France's former top intelligence officer, accused of overstepping legal bounds while working for the luxury titan.

As head of French counter-intelligence from 2008 to 2012, Squarcini was later recruited by LVMH to handle security. He allegedly collected private information illegally, breaking privacy laws while focusing on rooting out counterfeiting and keeping tabs on activists targeting the conglomerate.

The trial not only highlights LVMH's alleged aggressive practices but also casts a spotlight on Arnault amidst an industry downturn. Although Arnault settled a prior criminal probe with a financial agreement, he maintains ignorance of Squarcini's actions, attributing the recruit to his late associate, Pierre Gode.

(With inputs from agencies.)