Tiffany suit over LVMH deal gets fast track

Tiffany & Co. persuaded a judge to fast-track its lawsuit claiming LVMH is relying on faulty legal pretexts to cancel a us$16-billion buyout of the u.s. luxury jewelry store chain.

delaware Chancery Court Judge Joseph Slights III on monday rejected a request by the maker of Louis Vuitton bags and moet & Chandon champagne that he put off the case until well into next year. but the judge also denied Tiffany’s request to have the matter decided before the deal’s Nov. 24 closing date, setting a trial for Jan. 5, 2021.

The ruling puts pressure on Paris-based LVMH to justify cancellation of the luxury industry’s largest-ever deal. LVMH has previously pointed to a letter from the French government seeking a delay in closing the deal because of a trade dispute with the u.s. It has also said its decision was driven by management missteps by Tiffany during the pandemic, such as continuing to pay dividends.

Jonathan doorley, a u.s.based spokesman for LVMH didn’t immediately return an email seeking comment on Slights’ ruling.

Tiffany, which sued LVMH this month, says in its court filings that LVMH is trying to negotiate a lower deal price in the wake of the downturn in the luxury market.

As an example of LVMH‘S alleged bad faith, Tiffany has pointed to the French company’s delay in filing for a required european Commission antitrust review. LVMH, which filed for the review on Sept. 18, has denied the allegation, saying the delay was due to slowdowns at the regulator due to the pandemic. The commission said monday it will submit its findings by Oct. 26.

For Tiffany, a collapse of the deal would bring uncertainty with investors missing out on the promised us$135 a share. On monday, shares in Tiffany were at us$115.21 in after-hours trading in New york.

For LVMH, which is controlled by French billionaire bernard Arnault, getting out of the deal would prevent it from overpaying for an asset that’s recently lost its lustre and would need heavy investments in coming years to compete with brands like Cie Financiere richemont SA’S Cartier.