The investment bank, Morgan Stanley, is planning to file a counter-suit against the French drinks and luxury goods group, LVMH, for damages after the French company brought a €100m lawsuit against the bank, accusing it of being biased in its research.

"Morgan Stanley intends to counter-claim against LVMH for damage done by these proceedings, which should never have been brought and are vexatious, without merit and an abuse of the French Court system," the bank said in a statement following the first court meeting between the two sides. Morgan Stanley has stated that it would defend itself "vigorously" against the charges.