Morgan Stanley Suspending LVMH Coverage
January 25, 04
Following a ruling that it’s “considerably prejudiced” against LVMH's activities and reputation, U.S. investment bank Morgan Stanley decided to suspend it coverage of the luxury goods maker.
“This decision is unprecedented for us and was very difficult to take,” said Morgan Stanley Chairman Stephan Newhouse in a statement.
“The intolerable situation created by the court's judgment means it is impossible to continue for now to express our opinions on LVMH.”
Morgan Stanley plans to appeal the commercial court ruling, adding its “unwavering support” for analyst Claire Kent who did the LVMH research.
The Paris court awarded LVMH €30 million, ordering an independent expert to produce an estimate of how much LVMH had spent fighting the bad publicity. That estimate is being carried out with a view to awarding further damages at a later date.