French fashion giant LVMH Moet Hennessy-Louis Vuitton countersued Tiffany weeks after pulling out of its $16 billion takeovers of the jewelry company.
LVMH said in a filing Monday in Delaware Chancery Court that it had grounds to back out of the deal because Tiffany's business was badly damaged during the coronavirus pandemic, invalidating the agreement.
"The pandemic's disruption to the luxury industry and to Tiffany, in particular, will persist well into 2021 at a bare minimum," said LVMH's complaint. "Tiffany is particularly ill-suited for the challenges ahead."
Tiffany "is a mismanaged business that over the first half of 2020 hemorrhaged cash for the first time in a quarter-century, with no end to its problems in sight," the LVMH complaint added.
Tiffany sued LVMH, the owner of the Louis Vuitton and Dior luxury brands, earlier in September, alleging the fashion icon intentionally delayed the deal, citing tariff concerns.
Jim Cramer said that he could see a case for buying Tiffany, but said that he believes that it's a stock that he wouldn't be inclined to buy right now.