Louis Vuitton and Morgan Stanley in court battle

LVMH Moët Hennessy Louis Vuitton and Morgan Stanley presented their cases last week in LVMH's long-running bias suit against the investment bank. The latest arguments in the case, brought to courts in late 2002, is not expected to bring a decision from judges just yet. But the hearing could be explosive, with both sides airing old grievances in a long and bitter luxury war. In January 2004, the Paris commercial court ordered Morgan Stanley to pay LVMH 30 million euros, or $36 million at current exchange, for "gross misconduct" related to equity research LVMH claimed was biased toward rival Gucci Group, a client of the investment bank.

LVMH accuses Morgan Stanley and its star, analyst Claire Kent, of a premeditated and systematic effort to denigrate it. Kent suspended coverage of the firm's stock in the wake of the ruling. The luxury group is seeking an additional 182.9 million euros, or $219.5 million at current exchange, in damages. An expert is still tabulating material damages at the behest of the commercial court.