PARIS, Nov 28 (Reuters) - LVMH Chairman and

CEO Bernard Arnault is set to testify at a Paris court on

Thursday in the trial of France's former spy chief Bernard

Squarcini, a case that has cast light on the lengths to which

the world's biggest luxury group has allegedly gone to protect

its image.

Squarcini, who headed France's counter-intelligence services

from 2008 to 2012, was later hired by LVMH as a security

consultant, during which time he allegedly illegally collected

information on private individuals and violated privacy laws

while helping the company fight counterfeits and monitor

left-wing activists planning to target the company with

protests.

He is also charged with leaking classified information,

interfering with justice and peddling influence.

Squarcini's lawyers did not immediately respond to a request

for comment.

Arnault is not accused of any wrongdoing in the trial after

paying a 10 million euro settlement in 2021 to close a criminal

probe into LVMH's role in the case.

He has said that the recruitment of Squarcini was conducted

by Pierre Gode, his longtime right-hand man at LVMH who died in

2018, and that he was unaware of information allegedly collected

by Squarcini, according to court documents.

However the two-week trial has thrust the billionaire into

the spotlight at a time when his sprawling luxury empire is

already navigating a downturn in the industry and a reshuffling

of top management.

LVMH paid Squarcini's consulting firm Kyrnos 2.2 million

euros for services including allegedly searching the background

of individuals suspected of counterfeiting luxury goods.

He also allegedly monitored Francois Ruffin, a French

activist who is currently a politician, and members of his

left-wing publication Fakir as they planned to disrupt an LVMH

shareholder meeting and prepared their satirical, documentary

film "Merci Patron".

The film, which won the French Cesar award for best

documentary in 2017, follows a family that lost their jobs at a

supplier to LVMH.

Bernard Arnault's lawyer did not immediately respond to a

request for comment.