A former executive of Moët Hennessy, the wines and spirits arm of LVMH, is suing the company for €1.7 million ($2 million) after being dismissed in 2024. He alleges that his termination followed whistleblowing on possible sanctions violations related to sales to Russia.
THE CLAIM
Kenneth Kralick, who oversaw online sales, told the Paris tribunal that his career at Moët Hennessy changed after he flagged concerns in April 2023 about an alleged distribution system channeling products through the United States to Russia. His lawyer, Marine Le Conte, argued that he faced harassment, reduced responsibilities, and meetings deliberately conducted in French — a language he does not speak — in the months leading up to his dismissal.
Kralick is seeking compensation for what he describes as wrongful dismissal and retaliation, as well as unpaid overtime. He also disputes the manner of his exit, saying he was escorted out by three guards in front of colleagues. A ruling is scheduled for November 14.
THE DEFENSE
Moët Hennessy denies the allegations of sanctions-busting and retaliation. The company’s attorney, Pascal Delignières, said Kralick was dismissed after an internal investigation into his management style. The probe followed staff complaints and cited incidents in which he allegedly raised his middle finger at a colleague in a meeting with around 50 people and made an inappropriate remark about buying shoes for another employee.
Kralick denies making the gesture and says no witness has corroborated the allegation. He says he does not recall the remark but acknowledges it would have been tactless if true.
COMPANY CONTEXT
The dispute comes as Moët Hennessy undergoes significant restructuring. In early 2025, Philippe Schaus was succeeded as chief executive officer by Jean-Jacques Guiony, with Alexandre Arnault, son of LVMH CEO Bernard Arnault, appointed as deputy. The new leadership has announced plans to cut the workforce by 13 percent following a decline in revenues, particularly from slowing demand for Hennessy cognac in China and the United States.
THE CLAIM
Kenneth Kralick, who oversaw online sales, told the Paris tribunal that his career at Moët Hennessy changed after he flagged concerns in April 2023 about an alleged distribution system channeling products through the United States to Russia. His lawyer, Marine Le Conte, argued that he faced harassment, reduced responsibilities, and meetings deliberately conducted in French — a language he does not speak — in the months leading up to his dismissal.
Kralick is seeking compensation for what he describes as wrongful dismissal and retaliation, as well as unpaid overtime. He also disputes the manner of his exit, saying he was escorted out by three guards in front of colleagues. A ruling is scheduled for November 14.
THE DEFENSE
Moët Hennessy denies the allegations of sanctions-busting and retaliation. The company’s attorney, Pascal Delignières, said Kralick was dismissed after an internal investigation into his management style. The probe followed staff complaints and cited incidents in which he allegedly raised his middle finger at a colleague in a meeting with around 50 people and made an inappropriate remark about buying shoes for another employee.
Kralick denies making the gesture and says no witness has corroborated the allegation. He says he does not recall the remark but acknowledges it would have been tactless if true.
COMPANY CONTEXT
The dispute comes as Moët Hennessy undergoes significant restructuring. In early 2025, Philippe Schaus was succeeded as chief executive officer by Jean-Jacques Guiony, with Alexandre Arnault, son of LVMH CEO Bernard Arnault, appointed as deputy. The new leadership has announced plans to cut the workforce by 13 percent following a decline in revenues, particularly from slowing demand for Hennessy cognac in China and the United States.