Luxury goods firm LVMH said today it was seeking €100 million in damages from Morgan Stanley in a legal action.
A spokesman for LVMH said the suit, first disclosed by Morgan Stanley, alleged the US bank had published unfair stock analysis.
A source said the suit alleged that Morgan Stanley's research of LVMH was biased by its banking relationship with rival retailer Gucci.
In a legal disclaimer accompanying Morgan Stanley top luxury analyst Ms Claire Kent's Luxury Goods Weeklypublished last Friday, the broker said it would defend itself against LVMH's allegations.
"LVMH is unhappy with Morgan Stanley's research and alleges unfair treatment. Morgan Stanley categorically rejects LVMH's claim and stands by the integrity of its research. Morgan Stanley intends to defend this suit vigorously," it said.
Morgan Stanley was an underwriter of Gucci's 1995 initial public offering and has advised the company since.
LVMH last year abandoned long-running efforts to gain control of Gucci and sold its stake in the company to French retailer Pinault Printemps Redoute.