NEW YORK, Dec 22, 2001/ --- The fashion biz is abuzz following revelations that former Donna Karan International CEO John Idol is suing LVMH for non-payment of $12.2 million.

Idol, now CEO of Kasper ASL, was to receive $6.3 million from Donna Karan and $5.9 million from LVMH as an agreed payout figure for his 548,503 shares. But according to a filing in the State Supreme Court, LVMH has breached its contract with Idol, who has reportedly received none of the hefty payout.

LVMH's acquisition of DKI for $10.75 per share in cash, or a total of $243 million, was completed two weeks ago. LVMH will combine DKI with Gabrielle Studio Inc., the licensor of the Donna Karan trademarks which LVMH acquired in December last year.

LVMH has publicly admitted they owe Idol $12.2 million. The severance package was detailed in the companies' merger agreements filed with the Securities and Exchange Commission.

"I think it's safe to say John is extremely disappointed. We are all disappointed," said Idol's lawyer Arthur Woodard, a partner at Kaye Scholer LLP. "These contracts were negotiated openly and forthrightly," he told FWD.

While LVMH have until January 18 to formally reply to the filing, a company spokesperson has reportedly stated that the dispute with Idol concerns his performance under his contract. According to sources, no such issues have been raised with Idol, now or when the contracts were negotiated.

Employed as CEO of DKI in 1997, Idol helped resurrect the ailing company from a record loss of $92 million in pre-tax dollars in 1997, to a $22 million profit in 2000. However, in its final report two weeks ago as a public company, DKI reported a $53.7 million loss.

Idol left his CEO post at Donna Karan in July, three months ahead of schedule, after LVMH announced Giuseppe Brusone would take over as CEO when LVMH completed the acquisition.