Hermés Billionaire Goes to Court Over Six Million Missing Shares

The case came to light when the 81-year-old decided to sell his six million RMS shares. Being the largest shareholder in the luxury fashion business, selling them would allow him to bequeath half his multi-billion-euro fortune to his former gardener.

However, when Puech tried to do this, he discovered what he described as a “gigantic fraud.” It’s alleged that Freymond sold the RMS shares over two decades when he mismanaged his client’s financial affairs.

Hermés has a market capitalisation of €230bn, making it the second most valuable company on the Paris Stock Exchange. Puech’s family founded the business in the 1830s, and it became one of the world’s leading luxury brands thanks to its jewellery, silk goods and other exclusive products loved by celebrities and Royals.

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The Public Prosecutor’s Office found no evidence of fraud, with the appeals court in Geneva upholding that decision on 24 July. It’s not known when the shares were sold or who bought them, but Freymond’s lawyers insist that “he” [Puech] confirmed several times before the French justice that he alone handled the historical stocks of Hermès. They stated:

Our client will now examine all his legal possibilities to defend his honour.

According to Puech, Freymond had control of his bank statements for over 20 years and in 1998 the RMS shares were handed over to Swiss banks with his financial advisor overseeing them. That authority was cancelled in 2022 as Puech decided to take control of his affairs amid growing speculation over his succession plans.