Pinault Portrait Unfair

* The July 6 story regarding Francois Pinault is an unfair and inaccurate portrayal of the events surrounding the California civil lawsuit pending against Pinault and his company, Artemis [“Tycoon Has Law Hot on His Heels”].

The headline is grossly misleading. Contrary to what is written in the article, neither Pinault nor Artemis is a subject or target of any investigation by the Federal Reserve Board or the Department of Justice. The only accusations made against Pinault and Artemis are contained in a civil lawsuit launched by Chuck Quackenbush, the California state insurance commissioner who resigned last week. Thankfully, neither Quackenbush, nor the private contingency fee lawyer he hired, represent “the law” in California or anywhere else.

The evidence will show that both Pinault and Artemis always acted appropriately, ethically and in good faith. The company made no misrepresentations to anyone. In December 1992, Artemis simply purchased junk bonds at arm’s length from a subsidiary of Credit Lyonnais at a price based on an independent valuation by a major international accounting firm. These bonds had been unloaded by the then insurance commissioner nine months earlier because he personally decided that the bonds were too risky for the policyholders. Two years later, an Artemis subsidiary also purchased two-thirds of the restructured insurance company. That subsidiary has operated the insurance company successfully for over five years, has paid out hundreds of millions of dollars in claims to policyholders and has garnered the praise of the very same Quackenbush.

We are confident that the court will find Quackenbush’s suit to be totally without merit and will dismiss all claims against Pinault and Artemis.

ROBERT C. BONNER

Partner, Gibson, Dunn & Crutcher

Counsel to Francois Pinault and Artemis

Los Angeles