US Court Sets January Trial For Tiffany Lawsuit Against LVMH
U.S. Court grants Tiffany’s motion to expedite lawsuit against LVMH Moët Hennessy-Louis Vuitton. However, the court has not agreed to Tiffany request for trial before November 24.
The court has agreed to a date between the timeline requested by the two companies.
Tiffany had urged the court to hold the trial on a timetable that would enable a decision before the November 24 termination date in the merger agreement. LVMH had reportedly requested to hold the trial in March or April of next year.
But the court set a four-day trial beginning only on January 5, 2021.
Tiffany sued LVMH earlier this month after the French luxury goods conglomerate said it could not proceed with its $16.2 billion takeover of the U.S. jeweler.
Tiffany said Monday that it welcomed the court’s ruling to expedite the process. Despite LVMH’s ongoing efforts to avoid paying the agreed-upon price for Tiffany, a trial on January 5 will hopefully lead to a ruling prior to the expiration of U.S. antitrust clearance on February 3, 2021.
Tiffany stated that it will demonstrate to the court that LVMH is in clear breach of its obligations under a valid and binding agreement and that their claim of a material adverse effect is completely baseless.
Tiffany has acted in good faith in full compliance with the merger agreement and will continue to do so.
Meanwhile, LVMH said in a statement that it is fully confident that it will be able to defeat Tiffany’s accusations and convince the court that the conditions necessary for the acquisition of Tiffany are no longer met.
LVMH also said it will demonstrate to the American justice system that the mismanagement of Tiffany during the COVID-19 crisis constitutes a material adverse effect.
It was in November last year that LVMH agreed to buy Tiffany for $135 per share in cash. The transaction had an equity value of about 14.7 billion euros or $16.2 billion. Tiffany shareholders approved its proposed acquisition by LVMH in February.
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