PARIS — The appeals court here will rule today whether to uphold a ruling of “gross misconduct” on the part of Morgan Stanley related to its equity research about LVMH Moët Hennessy Louis Vuitton.
The bias suit, which has been grinding its way through the French courts since 2002, is said to hinge on professional responsibility, and whether Morgan Stanley analyst Claire Kent committed fault with research that LVMH characterized as a premeditated smear campaign. The French luxury group has argued Kent was biased toward rival Gucci Group, a client of Morgan Stanley.
The investment firm has argued that its research was accurate and honest, and that LVMH’s case is groundless and opportunistic. That’s the basis of its counterclaim seeking 10 million euros, or $12.5 million, in damages caused by the proceedings.
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