The CEO of French media conglomerate Lagardere – owner of publishing house Hachette – has stepped down from his executive roles as he battles accusations of embezzlement in France.
Arnaud Lagardere, who is Lagardere’s chairman and CEO, has reportedly been accused by French prosecutors of “misappropriating company funds,” according to a report from Reuters. The publication reported Lagardere denies all the allegations.
In a statement, a rep for Lagardere SA said: “This indictment essentially concerns facts relating to personal companies wholly owned by Arnaud Lagardère and not involving any Lagardère group companies… In the context of his indictment, Arnaud Lagardère has been provisionally banned from holding executive office, a measure which he is contesting and against which he intends to appeal, but which nevertheless will oblige him to resign his executive offices within the Group, despite the appeal..”
Vivendi owns a controlling stake in the company, which spans radio stations, retail outlets and publishing, including the magazine Paris Match. Hachette is probably Lagardere’s best-known subsidiary internationally, having published blockbuster titles including Stephanie Meyer’s “Twilight” series.
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Lagardere’s father Jean-Luc was responsible for turning the company into a media powerhouse. Under Lagardere’s stewardship it has sought to focus on publishing and travel retail (including the line of Relay stores ubiquitous in French railway stations), selling off other parts of the business.
Read the full statement from Lagardère below:
Arnaud Lagardère, Chairman and Chief Executive Officer, today informed the directors of Lagardère SA of the indictment against him, which he is contesting and against which he will appeal.
This indictment essentially concerns facts relating to personal companies wholly owned by Arnaud Lagardère and not involving any Lagardère group companies.
As regards Lagardère SA, the indictment relates solely to facts dating from 2018 and 2019, qualified as vote buying, abuse of power and dissemination of false or misleading information, which Arnaud Lagardère firmly disputes.
In the context of his indictment, Arnaud Lagardère has been provisionally banned from holding executive office, a measure which he is contesting and against which he intends to appeal, but which nevertheless will oblige him to resign his executive offices within the Group, despite the appeal.
The directors have taken note of this measure and will meet in the near future to take all provisional measures required to ensure the Group’s governance pending Arnaud Lagardère being able to resume the management of the Group.
The directors wish to reiterate that Arnaud Lagardère is presumed innocent, and that an indictment in no way prejudges the outcome of the proceedings.
