Dior Leak Scandal: How a Secret 2B Deal Sparked a Global Insider Trading Probe

French authorities are digging into a high-stakes insider trading case that centers on Christian Dior (CHDRF) and a never-announced 2 billion ($2.3 billion) buyout plan by Bernard Arnault. What's unusual isn't just the leakit's how early it may have started. Investigators say a network allegedly tried to win over elite university students long before they entered the workforce, offering perks like rent support and career coaching. One such student later joined Rothschild and worked on Arnault's Dior delisting plan, which was ultimately shelved in 2019. Yet by that point, trades linked to the stock had already raised flags in Paris, Dubai, and New York.

The individual, now a full-time banker, reportedly remained in contact with the network while staffing M&A dealsfirst during his Rothschild internship, later on Sanofi's SNY $3.4 billion acquisition of Principia Biopharma while at Evercore. French investigators suspect he may have been a source behind multiple trades flagged by regulators, including ones under review by the US Justice Department. Though no charges have been filed, authorities say the Dior trades generated roughly 400,000 in gains. These sit alongside a broader $17 million insider trading case spanning both continents, with overlapping players and timelines.

This comes as France's market watchdog AMF and anti-corruption prosecutors ramp up scrutiny on how organized groups are embedding themselves inside banks, law firms, and IT departments to access deal flow early. The Dior case, now with the Parquet National Financier and a special gendarmerie unit, is shaping up to be a test of how far that influence may reach. The alleged tipster has denied wrongdoing through legal counsel, while Rothschild, Dior, and other firms involved declined to comment. The investigation continues, as regulators weigh how long these silent relationships may have shaped trades behind the scenes.