FINANCIAL COMMUNICATION: FRAMEWORK AND PRACTICES - 2019 EDITION

95 LITIGATION In the course of business, the issuer is exposed to various types of litigation. Schematically, that litigation may be of the following types: n litigation with a client, a supplier or a commercial partner; n action for damages brought against the issuer due to defects in its products or services or related to non-compliance with regulations; n litigation with the administrative authorities or any other supervisory body; n litigation with employees or their representatives. In principle, the issuer’s communication concerning any major litigation is made within its periodic information (registration document/URD and financial statements). As an exception, the issuer assesses the necessity and timeliness of immediately disseminating a press release by examining whether the litigation is material with regard to its industrial, commercial and/or financial consequences for the issuer, it being understood that the materiality of litigation with employees and/or their representatives must be assessed with regard to the payroll concerned and claims against an employee redundancy plan or a collective bargaining agreement. In practice, the issuer’s communication generally pertains to the terms of the litigation and the amount of the claims against the issuer relative to the litigation. The issuer’s communication may also include an assessment of the potential commercial, industrial, social and/or financial impact of the outcome of the litigation for the issuer – provided that disclosure of this assessment will not damage the issuer’s interests within the framework of the legal proceedings in progress – and, if necessary, the communication may also state whether the litigation has been provisioned in the issuer’s financial statements. Litigations: n LVMH