LVMH note costs Morgan £21m

A PARIS court today ordered investment bank Morgan Stanley to pay e30m (£21m) in damages and e10m to help restore the brand of the world's biggest luxury goods group, Louis Vuitton Moet Hennessy.

The case, which sets a legal precedent, was launched in October 2002 after LVMH alleged Morgan Stanley analyst Claire Kent had published unfair research.

At the time, Morgan Stanley, a US-based investment bank, was adviser to LVMH arch-rival Gucci.

LVMH claimed e100m in damages and interest. Morgan Stanley counter-sued for e10m damages, alleging the case was malicious.

Today, the Paris High Court said Morgan Stanley was guilty of 'serious fault to the detriment of LVMH'.